Correlation Between Continental Energy and Saturn Oil
Can any of the company-specific risk be diversified away by investing in both Continental 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 Continental 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 Continental Energy and Saturn Oil Gas, you can compare the effects of market volatilities on Continental 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 Continental Energy with a short position of Saturn Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Energy and Saturn Oil.
Diversification Opportunities for Continental Energy and Saturn Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Continental and Saturn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Continental 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 Continental 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 Continental 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 Continental Energy i.e., Continental Energy and Saturn Oil go up and down completely randomly.
Pair Corralation between Continental Energy and Saturn Oil
If you would invest 157.00 in Saturn Oil Gas on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Saturn Oil Gas or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Continental Energy vs. Saturn Oil Gas
Performance |
| Timeline |
| Continental Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Saturn Oil Gas |
Continental Energy and Saturn Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Continental Energy and Saturn Oil
The main advantage of trading using opposite Continental Energy and Saturn Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Continental 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.| Continental Energy vs. Strat Petroleum | Continental Energy vs. Imperial Res | Continental Energy vs. Century Petroleum Corp |
| Saturn Oil vs. Permian Resources | Saturn Oil vs. Devon Energy | Saturn Oil vs. EOG Resources | Saturn Oil vs. Coterra 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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