Correlation Between RANGE RESOURCES and Kemper

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

By analyzing existing cross correlation between RANGE RESOURCES and Kemper, you can compare the effects of market volatilities on RANGE RESOURCES and Kemper 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 Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of RANGE RESOURCES and Kemper.

Diversification Opportunities for RANGE RESOURCES and Kemper

0.74

Correlation Coefficient

RANGE RESOURCES  Kemper

Poor diversification

The 3 months correlation between RANGE and Kemper is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding RANGE RESOURCES and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper 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 are associated (or correlated) with Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of RANGE RESOURCES i.e., RANGE RESOURCES and Kemper go up and down completely randomly.

Pair Corralation between RANGE RESOURCES and Kemper

Assuming the 90 days trading horizon RANGE RESOURCES is expected to generate 1.48 times more return on investment than Kemper. However, RANGE RESOURCES is 1.48 times more volatile than Kemper. It trades about 0.11 of its potential returns per unit of risk. Kemper is currently generating about 0.1 per unit of risk. If you would invest  2,794  in RANGE RESOURCES on April 22, 2025 and sell it today you would earn a total of  463.00  from holding RANGE RESOURCES or generate 16.57% return on investment over 90 days.

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

RANGE RESOURCES  vs.  Kemper

RANGE RESOURCES

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RANGE RESOURCES are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, RANGE RESOURCES exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kemper

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kemper are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Kemper may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with RANGE RESOURCES and Kemper

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

The idea behind RANGE RESOURCES and Kemper 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.