Correlation Between Gear Energy and San Leon
Can any of the company-specific risk be diversified away by investing in both Gear Energy and San Leon 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 Gear Energy and San Leon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gear Energy and San Leon Energy, you can compare the effects of market volatilities on Gear Energy and San Leon 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 Gear Energy with a short position of San Leon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gear Energy and San Leon.
Diversification Opportunities for Gear Energy and San Leon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gear and San is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gear Energy and San Leon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Leon Energy and Gear 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 Gear Energy are associated (or correlated) with San Leon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Leon Energy has no effect on the direction of Gear Energy i.e., Gear Energy and San Leon go up and down completely randomly.
Pair Corralation between Gear Energy and San Leon
If you would invest 33.00 in Gear Energy on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Gear Energy or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Gear Energy vs. San Leon Energy
Performance |
| Timeline |
| Gear Energy |
| San Leon Energy |
Gear Energy and San Leon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gear Energy and San Leon
The main advantage of trading using opposite Gear Energy and San Leon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gear Energy position performs unexpectedly, San Leon 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 Leon will offset losses from the drop in San Leon's long position.| Gear Energy vs. Tamarack Valley Energy | Gear Energy vs. MEG Energy Corp | Gear Energy vs. Cardinal Energy | Gear Energy vs. Whitecap Resources |
| San Leon vs. Horizon Oil Limited | San Leon vs. PetroShale | San Leon vs. Enwell Energy plc | San Leon vs. Tullow Oil plc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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