Correlation Between AdTheorent Holding and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both AdTheorent Holding and Sable Offshore 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 AdTheorent Holding and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdTheorent Holding and Sable Offshore Corp, you can compare the effects of market volatilities on AdTheorent Holding and Sable Offshore 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 AdTheorent Holding with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdTheorent Holding and Sable Offshore.
Diversification Opportunities for AdTheorent Holding and Sable Offshore
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AdTheorent and Sable is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AdTheorent Holding and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and AdTheorent Holding 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 AdTheorent Holding are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of AdTheorent Holding i.e., AdTheorent Holding and Sable Offshore go up and down completely randomly.
Pair Corralation between AdTheorent Holding and Sable Offshore
If you would invest 2,286 in Sable Offshore Corp on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Sable Offshore Corp or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
AdTheorent Holding vs. Sable Offshore Corp
Performance |
| Timeline |
| AdTheorent Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sable Offshore Corp |
AdTheorent Holding and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdTheorent Holding and Sable Offshore
The main advantage of trading using opposite AdTheorent Holding and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdTheorent Holding position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| AdTheorent Holding vs. Sable Offshore Corp | AdTheorent Holding vs. Jutal Offshore Oil | AdTheorent Holding vs. Western Asset Investment | AdTheorent Holding vs. Lululemon Athletica |
| Sable Offshore vs. Dine Brands Global | Sable Offshore vs. RCI Hospitality Holdings | Sable Offshore vs. Sweetgreen | Sable Offshore vs. Dennys Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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