Correlation Between Lundin Energy and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Lundin Energy and Saker Aviation 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 Lundin Energy and Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Energy AB and Saker Aviation Services, you can compare the effects of market volatilities on Lundin Energy and Saker Aviation 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 Lundin Energy with a short position of Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Energy and Saker Aviation.
Diversification Opportunities for Lundin Energy and Saker Aviation
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and Saker is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Energy AB and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services and Lundin 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 Lundin Energy AB are associated (or correlated) with Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Lundin Energy i.e., Lundin Energy and Saker Aviation go up and down completely randomly.
Pair Corralation between Lundin Energy and Saker Aviation
Assuming the 90 days horizon Lundin Energy AB is expected to under-perform the Saker Aviation. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lundin Energy AB is 1.37 times less risky than Saker Aviation. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Saker Aviation Services is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,170 in Saker Aviation Services on August 24, 2024 and sell it today you would lose (169.00) from holding Saker Aviation Services or give up 14.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Energy AB vs. Saker Aviation Services
Performance |
| Timeline |
| Lundin Energy AB |
| Saker Aviation Services |
Lundin Energy and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Energy and Saker Aviation
The main advantage of trading using opposite Lundin Energy and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Energy position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Lundin Energy vs. Renew Energy Global | Lundin Energy vs. Energy Vault Holdings | Lundin Energy vs. Fluence Energy | Lundin Energy vs. Advent Technologies Holdings |
| Saker Aviation vs. Small Cap Core | Saker Aviation vs. Freedom Holding Corp | Saker Aviation vs. Gfl Environmental Holdings | Saker Aviation vs. Growth Fund Of |
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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