Correlation Between Birchcliff Energy and Saturn Oil
Can any of the company-specific risk be diversified away by investing in both Birchcliff Energy 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 Birchcliff Energy and Saturn Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birchcliff Energy and Saturn Oil Gas, you can compare the effects of market volatilities on Birchcliff Energy 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 Birchcliff Energy with a short position of Saturn Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birchcliff Energy and Saturn Oil.
Diversification Opportunities for Birchcliff Energy and Saturn Oil
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Birchcliff and Saturn is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Birchcliff Energy 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 Birchcliff 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 Birchcliff Energy 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 Birchcliff Energy i.e., Birchcliff Energy and Saturn Oil go up and down completely randomly.
Pair Corralation between Birchcliff Energy and Saturn Oil
Assuming the 90 days horizon Birchcliff Energy is expected to generate 0.88 times more return on investment than Saturn Oil. However, Birchcliff Energy is 1.14 times less risky than Saturn Oil. It trades about 0.0 of its potential returns per unit of risk. Saturn Oil Gas is currently generating about -0.01 per unit of risk. If you would invest 400.00 in Birchcliff Energy on September 1, 2024 and sell it today you would lose (22.00) from holding Birchcliff Energy or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Birchcliff Energy vs. Saturn Oil Gas
Performance |
| Timeline |
| Birchcliff Energy |
| Saturn Oil Gas |
Birchcliff Energy and Saturn Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birchcliff Energy and Saturn Oil
The main advantage of trading using opposite Birchcliff Energy and Saturn Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birchcliff Energy 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.| Birchcliff Energy vs. Tamarack Valley Energy | Birchcliff Energy vs. Peyto ExplorationDevelopment Corp | Birchcliff Energy vs. Gear Energy | Birchcliff Energy vs. Spartan Delta Corp |
| Saturn Oil vs. San Leon Energy | Saturn Oil vs. Enwell Energy plc | Saturn Oil vs. Dno ASA | Saturn Oil vs. Questerre 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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