Correlation Between Dno ASA and San Juan
Can any of the company-specific risk be diversified away by investing in both Dno ASA 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 Dno ASA and San Juan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dno ASA and San Juan Basin, you can compare the effects of market volatilities on Dno ASA 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 Dno ASA with a short position of San Juan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dno ASA and San Juan.
Diversification Opportunities for Dno ASA and San Juan
Good diversification
The 3 months correlation between Dno and San is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dno ASA 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 Dno ASA 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 Dno ASA 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 Dno ASA i.e., Dno ASA and San Juan go up and down completely randomly.
Pair Corralation between Dno ASA and San Juan
Assuming the 90 days horizon Dno ASA is expected to generate 5.59 times more return on investment than San Juan. However, Dno ASA is 5.59 times more volatile than San Juan Basin. It trades about 0.06 of its potential returns per unit of risk. San Juan Basin is currently generating about -0.05 per unit of risk. If you would invest 119.00 in Dno ASA on August 24, 2024 and sell it today you would lose (29.00) from holding Dno ASA or give up 24.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.78% |
| Values | Daily Returns |
Dno ASA vs. San Juan Basin
Performance |
| Timeline |
| Dno ASA |
| San Juan Basin |
Dno ASA and San Juan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dno ASA and San Juan
The main advantage of trading using opposite Dno ASA and San Juan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dno ASA 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.| Dno ASA vs. Permian Resources | Dno ASA vs. Devon Energy | Dno ASA vs. EOG Resources | Dno ASA vs. Coterra Energy |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |