Correlation Between Calima Energy and Civitas Resources

Can any of the company-specific risk be diversified away by investing in both Calima Energy and Civitas Resources 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 Calima Energy and Civitas Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calima Energy Limited and Civitas Resources, you can compare the effects of market volatilities on Calima Energy and Civitas Resources 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 Calima Energy with a short position of Civitas Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calima Energy and Civitas Resources.

Diversification Opportunities for Calima Energy and Civitas Resources

0.0

Correlation Coefficient

Calima Energy  Civitas Resources

Pay attention - limited upside

The 3 months correlation between Calima and Civitas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calima Energy Limited and Civitas Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civitas Resources and Calima Energy 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 Calima Energy Limited are associated (or correlated) with Civitas Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civitas Resources has no effect on the direction of Calima Energy i.e., Calima Energy and Civitas Resources go up and down completely randomly.

Pair Corralation between Calima Energy and Civitas Resources

If you would invest  1.00  in Civitas Resources on May 4, 2025 and sell it today you would earn a total of  5.70  from holding Civitas Resources or generate 570.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Calima Energy Limited  vs.  Civitas Resources

Calima Energy Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calima Energy Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Calima Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Civitas Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Civitas Resources are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Civitas Resources demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calima Energy and Civitas Resources

The main advantage of trading using opposite Calima Energy and Civitas Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calima Energy position performs unexpectedly, Civitas Resources 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 Civitas Resources will offset losses from the drop in Civitas Resources' long position.

The idea behind Calima Energy Limited and Civitas Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.