Correlation Between Athabasca Oil and Sintana Energy
Can any of the company-specific risk be diversified away by investing in both Athabasca Oil and Sintana Energy 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 Sintana Energy 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 Sintana Energy, you can compare the effects of market volatilities on Athabasca Oil and Sintana Energy 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 Sintana Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athabasca Oil and Sintana Energy.
Diversification Opportunities for Athabasca Oil and Sintana Energy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Athabasca and Sintana is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Athabasca Oil Corp and Sintana Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sintana Energy 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 Sintana Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sintana Energy has no effect on the direction of Athabasca Oil i.e., Athabasca Oil and Sintana Energy go up and down completely randomly.
Pair Corralation between Athabasca Oil and Sintana Energy
Assuming the 90 days horizon Athabasca Oil is expected to generate 3.13 times less return on investment than Sintana Energy. But when comparing it to its historical volatility, Athabasca Oil Corp is 2.34 times less risky than Sintana Energy. It trades about 0.08 of its potential returns per unit of risk. Sintana Energy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8.10 in Sintana Energy on August 30, 2024 and sell it today you would earn a total of 61.90 from holding Sintana Energy or generate 764.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athabasca Oil Corp vs. Sintana Energy
Performance |
| Timeline |
| Athabasca Oil Corp |
| Sintana Energy |
Athabasca Oil and Sintana Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athabasca Oil and Sintana Energy
The main advantage of trading using opposite Athabasca Oil and Sintana Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athabasca Oil position performs unexpectedly, Sintana Energy 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 Sintana Energy will offset losses from the drop in Sintana Energy'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 |
| Sintana Energy vs. Kiwetinohk Energy Corp | Sintana Energy vs. Melbana Energy Limited | Sintana Energy vs. Pancontinental Oil Gas | Sintana Energy vs. Eco Oil Gas |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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