Correlation Between Altura Energy and ShaMaran Petroleum
Can any of the company-specific risk be diversified away by investing in both Altura Energy and ShaMaran Petroleum 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 Altura Energy and ShaMaran Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altura Energy and ShaMaran Petroleum Corp, you can compare the effects of market volatilities on Altura Energy and ShaMaran Petroleum 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 Altura Energy with a short position of ShaMaran Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altura Energy and ShaMaran Petroleum.
Diversification Opportunities for Altura Energy and ShaMaran Petroleum
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Altura and ShaMaran is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Altura Energy and ShaMaran Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShaMaran Petroleum Corp and Altura 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 Altura Energy are associated (or correlated) with ShaMaran Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShaMaran Petroleum Corp has no effect on the direction of Altura Energy i.e., Altura Energy and ShaMaran Petroleum go up and down completely randomly.
Pair Corralation between Altura Energy and ShaMaran Petroleum
Assuming the 90 days horizon Altura Energy is expected to under-perform the ShaMaran Petroleum. But the pink sheet apears to be less risky and, when comparing its historical volatility, Altura Energy is 1.59 times less risky than ShaMaran Petroleum. The pink sheet trades about -0.07 of its potential returns per unit of risk. The ShaMaran Petroleum Corp is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 9.00 in ShaMaran Petroleum Corp on December 1, 2024 and sell it today you would earn a total of 5.00 from holding ShaMaran Petroleum Corp or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altura Energy vs. ShaMaran Petroleum Corp
Performance |
| Timeline |
| Altura Energy |
| ShaMaran Petroleum Corp |
Altura Energy and ShaMaran Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altura Energy and ShaMaran Petroleum
The main advantage of trading using opposite Altura Energy and ShaMaran Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altura Energy position performs unexpectedly, ShaMaran Petroleum 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 ShaMaran Petroleum will offset losses from the drop in ShaMaran Petroleum's long position.| Altura Energy vs. AER Energy Resources | Altura Energy vs. Alamo Energy Corp | Altura Energy vs. Arete Industries | Altura Energy vs. Barrister Energy LLC |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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