Correlation Between Crescent Energy and ChampionX

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

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

Diversification Opportunities for Crescent Energy and ChampionX

0.23

Correlation Coefficient

Crescent Energy  ChampionX

Modest diversification

The 3 months correlation between Crescent and ChampionX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Energy Co and ChampionX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChampionX and Crescent 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 Crescent Energy Co are associated (or correlated) with ChampionX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChampionX has no effect on the direction of Crescent Energy i.e., Crescent Energy and ChampionX go up and down completely randomly.

Pair Corralation between Crescent Energy and ChampionX

Given the investment horizon of 90 days Crescent Energy Co is expected to generate 1.51 times more return on investment than ChampionX. However, Crescent Energy is 1.51 times more volatile than ChampionX. It trades about 0.07 of its potential returns per unit of risk. ChampionX is currently generating about 0.06 per unit of risk. If you would invest  812.00  in Crescent Energy Co on May 5, 2025 and sell it today you would earn a total of  84.00  from holding Crescent Energy Co or generate 10.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	79.37%
Values	Daily Returns

Crescent Energy Co  vs.  ChampionX

Crescent Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Crescent Energy Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Crescent Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ChampionX

Risk-Adjusted Performance

Modest

Over the last 90 days ChampionX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly conflicting technical indicators, ChampionX may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Crescent Energy and ChampionX

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

The idea behind Crescent Energy Co and ChampionX 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.