Correlation Between Coterra Energy and LOG Commercial

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

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

Diversification Opportunities for Coterra Energy and LOG Commercial

-0.54

Correlation Coefficient

Coterra Energy  LOG Commercial

Excellent diversification

The 3 months correlation between Coterra and LOG is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Coterra Energy and LOG Commercial Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOG Commercial Properties and Coterra 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 Coterra Energy are associated (or correlated) with LOG Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOG Commercial Properties has no effect on the direction of Coterra Energy i.e., Coterra Energy and LOG Commercial go up and down completely randomly.

Pair Corralation between Coterra Energy and LOG Commercial

Assuming the 90 days trading horizon Coterra Energy is expected to under-perform the LOG Commercial. But the stock apears to be less risky and, when comparing its historical volatility, Coterra Energy is 1.2 times less risky than LOG Commercial. The stock trades about -0.08 of its potential returns per unit of risk. The LOG Commercial Properties is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,917  in LOG Commercial Properties on April 22, 2025 and sell it today you would earn a total of  62.00  from holding LOG Commercial Properties or generate 3.23% return on investment over 90 days.

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

Coterra Energy  vs.  LOG Commercial Properties

Coterra Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coterra Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite 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.

LOG Commercial Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LOG Commercial Properties are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, LOG Commercial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Coterra Energy and LOG Commercial

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

The idea behind Coterra Energy and LOG Commercial Properties 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.