Correlation Between Camber Energy and San Juan
Can any of the company-specific risk be diversified away by investing in both Camber Energy and San Juan 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 Camber Energy and San Juan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camber Energy and San Juan Basin, you can compare the effects of market volatilities on Camber Energy and San Juan 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 Camber Energy with a short position of San Juan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camber Energy and San Juan.
Diversification Opportunities for Camber Energy and San Juan
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camber and San is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Camber Energy and San Juan Basin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Juan Basin and Camber 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 Camber Energy are associated (or correlated) with San Juan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Juan Basin has no effect on the direction of Camber Energy i.e., Camber Energy and San Juan go up and down completely randomly.
Pair Corralation between Camber Energy and San Juan
Considering the 90-day investment horizon Camber Energy is expected to under-perform the San Juan. In addition to that, Camber Energy is 3.1 times more volatile than San Juan Basin. It trades about -0.17 of its total potential returns per unit of risk. San Juan Basin is currently generating about 0.05 per unit of volatility. If you would invest 401.00 in San Juan Basin on September 1, 2024 and sell it today you would earn a total of 46.00 from holding San Juan Basin or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camber Energy vs. San Juan Basin
Performance |
| Timeline |
| Camber Energy |
| San Juan Basin |
Camber Energy and San Juan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camber Energy and San Juan
The main advantage of trading using opposite Camber Energy and San Juan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camber Energy position performs unexpectedly, San Juan 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 San Juan will offset losses from the drop in San Juan's long position.The idea behind Camber Energy and San Juan Basin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| San Juan vs. Sabine Royalty Trust | San Juan vs. Permian Basin Royalty | San Juan vs. Cross Timbers Royalty | San Juan vs. Mesa Royalty Trust |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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