Correlation Between Range Resources and ConocoPhillips
Can any of the company-specific risk be diversified away by investing in both Range Resources and ConocoPhillips at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Range Resources and ConocoPhillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Range Resources Corp and ConocoPhillips, you can compare the effects of market volatilities on Range Resources and ConocoPhillips and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Range Resources with a short position of ConocoPhillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Range Resources and ConocoPhillips.
Diversification Opportunities for Range Resources and ConocoPhillips
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Range and ConocoPhillips is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Range Resources Corp and ConocoPhillips in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConocoPhillips and Range Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Range Resources Corp are associated (or correlated) with ConocoPhillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConocoPhillips has no effect on the direction of Range Resources i.e., Range Resources and ConocoPhillips go up and down completely randomly.
Pair Corralation between Range Resources and ConocoPhillips
Considering the 90-day investment horizon Range Resources Corp is expected to under-perform the ConocoPhillips. In addition to that, Range Resources is 1.42 times more volatile than ConocoPhillips. It trades about -0.14 of its total potential returns per unit of risk. ConocoPhillips is currently generating about 0.12 per unit of volatility. If you would invest 9,291 in ConocoPhillips on June 3, 2025 and sell it today you would earn a total of 606.00 from holding ConocoPhillips or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Range Resources Corp vs. ConocoPhillips
Performance |
| Timeline |
| Range Resources Corp |
| ConocoPhillips |
Range Resources and ConocoPhillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Range Resources and ConocoPhillips
The main advantage of trading using opposite Range Resources and ConocoPhillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Range Resources position performs unexpectedly, ConocoPhillips can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ConocoPhillips will offset losses from the drop in ConocoPhillips' long position.| Range Resources vs. Expand Energy | Range Resources vs. Antero Resources Corp | Range Resources vs. EQT Corporation | Range Resources vs. Matador Resources |
| ConocoPhillips vs. EOG Resources | ConocoPhillips vs. Devon Energy | ConocoPhillips vs. Diamondback Energy | ConocoPhillips vs. Chevron Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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