Correlation Between Cetus Capital and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Cetus Capital and Sable Offshore 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 Cetus Capital and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cetus Capital Acquisition and Sable Offshore Corp, you can compare the effects of market volatilities on Cetus Capital and Sable Offshore 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 Cetus Capital with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cetus Capital and Sable Offshore.
Diversification Opportunities for Cetus Capital and Sable Offshore
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cetus and Sable is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cetus Capital Acquisition and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and Cetus Capital 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 Cetus Capital Acquisition are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Cetus Capital i.e., Cetus Capital and Sable Offshore go up and down completely randomly.
Pair Corralation between Cetus Capital and Sable Offshore
Given the investment horizon of 90 days Cetus Capital Acquisition is expected to generate 19.26 times more return on investment than Sable Offshore. However, Cetus Capital is 19.26 times more volatile than Sable Offshore Corp. It trades about 0.07 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.07 per unit of risk. If you would invest 0.00 in Cetus Capital Acquisition on September 1, 2024 and sell it today you would earn a total of 1,141 from holding Cetus Capital Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.29% |
| Values | Daily Returns |
Cetus Capital Acquisition vs. Sable Offshore Corp
Performance |
| Timeline |
| Cetus Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sable Offshore Corp |
Cetus Capital and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cetus Capital and Sable Offshore
The main advantage of trading using opposite Cetus Capital and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cetus Capital position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| Cetus Capital vs. Pintec Technology Holdings | Cetus Capital vs. Chiba Bank Ltd | Cetus Capital vs. KeyCorp | Cetus Capital vs. Commonwealth Bank of |
| Sable Offshore vs. Helmerich and Payne | Sable Offshore vs. Noble plc | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Precision Drilling |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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