Correlation Between CNX Resources and Plains All

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

By analyzing existing cross correlation between CNX Resources Corp and Plains All American, you can compare the effects of market volatilities on CNX Resources and Plains All 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 CNX Resources with a short position of Plains All. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNX Resources and Plains All.

Diversification Opportunities for CNX Resources and Plains All

0.27

Correlation Coefficient

CNX Resources  Plains All

Modest diversification

The 3 months correlation between CNX and Plains is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CNX Resources Corp and Plains All American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plains All American and CNX 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 CNX Resources Corp are associated (or correlated) with Plains All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plains All American has no effect on the direction of CNX Resources i.e., CNX Resources and Plains All go up and down completely randomly.

Pair Corralation between CNX Resources and Plains All

Considering the 90-day investment horizon CNX Resources Corp is expected to under-perform the Plains All. In addition to that, CNX Resources is 1.54 times more volatile than Plains All American. It trades about -0.05 of its total potential returns per unit of risk. Plains All American is currently generating about 0.12 per unit of volatility. If you would invest  1,637  in Plains All American on May 7, 2025 and sell it today you would earn a total of  156.00  from holding Plains All American or generate 9.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CNX Resources Corp  vs.  Plains All American

CNX Resources Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days CNX Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Plains All American

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Plains All American are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Plains All may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CNX Resources and Plains All

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

The idea behind CNX Resources Corp and Plains All American 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.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.