Correlation Between Athabasca Oil and Saturn Oil
Can any of the company-specific risk be diversified away by investing in both Athabasca Oil and Saturn Oil 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 Athabasca Oil and Saturn Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athabasca Oil Corp and Saturn Oil Gas, you can compare the effects of market volatilities on Athabasca Oil and Saturn Oil 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 Athabasca Oil with a short position of Saturn Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athabasca Oil and Saturn Oil.
Diversification Opportunities for Athabasca Oil and Saturn Oil
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Athabasca and Saturn is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Athabasca Oil Corp and Saturn Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saturn Oil Gas and Athabasca Oil 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 Athabasca Oil Corp are associated (or correlated) with Saturn Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saturn Oil Gas has no effect on the direction of Athabasca Oil i.e., Athabasca Oil and Saturn Oil go up and down completely randomly.
Pair Corralation between Athabasca Oil and Saturn Oil
Assuming the 90 days horizon Athabasca Oil Corp is expected to generate 0.86 times more return on investment than Saturn Oil. However, Athabasca Oil Corp is 1.16 times less risky than Saturn Oil. It trades about 0.01 of its potential returns per unit of risk. Saturn Oil Gas is currently generating about -0.04 per unit of risk. If you would invest 372.00 in Athabasca Oil Corp on August 29, 2024 and sell it today you would lose (3.00) from holding Athabasca Oil Corp or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athabasca Oil Corp vs. Saturn Oil Gas
Performance |
| Timeline |
| Athabasca Oil Corp |
| Saturn Oil Gas |
Athabasca Oil and Saturn Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athabasca Oil and Saturn Oil
The main advantage of trading using opposite Athabasca Oil and Saturn Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athabasca Oil position performs unexpectedly, Saturn Oil 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 Saturn Oil will offset losses from the drop in Saturn Oil's long position.| Athabasca Oil vs. Yamaha Motor Co | Athabasca Oil vs. Nitto Denko Corp | Athabasca Oil vs. Farmers Merchants Bancorp | Athabasca Oil vs. Furukawa Electric Co |
| Saturn Oil vs. Permian Resources | Saturn Oil vs. Devon Energy | Saturn Oil vs. EOG Resources | Saturn Oil vs. Coterra Energy |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |