Correlation Between Saturn Oil and Athabasca Oil
Can any of the company-specific risk be diversified away by investing in both Saturn Oil and Athabasca 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 Saturn Oil and Athabasca Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saturn Oil Gas and Athabasca Oil Corp, you can compare the effects of market volatilities on Saturn Oil and Athabasca 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 Saturn Oil with a short position of Athabasca Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturn Oil and Athabasca Oil.
Diversification Opportunities for Saturn Oil and Athabasca Oil
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saturn and Athabasca is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Saturn Oil Gas and Athabasca Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athabasca Oil Corp and Saturn Oil 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 Saturn Oil Gas are associated (or correlated) with Athabasca Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athabasca Oil Corp has no effect on the direction of Saturn Oil i.e., Saturn Oil and Athabasca Oil go up and down completely randomly.
Pair Corralation between Saturn Oil and Athabasca Oil
Assuming the 90 days horizon Saturn Oil Gas is expected to generate 1.23 times more return on investment than Athabasca Oil. However, Saturn Oil is 1.23 times more volatile than Athabasca Oil Corp. It trades about 0.3 of its potential returns per unit of risk. Athabasca Oil Corp is currently generating about 0.17 per unit of risk. If you would invest 136.00 in Saturn Oil Gas on October 23, 2024 and sell it today you would earn a total of 20.00 from holding Saturn Oil Gas or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saturn Oil Gas vs. Athabasca Oil Corp
Performance |
| Timeline |
| Saturn Oil Gas |
| Athabasca Oil Corp |
Saturn Oil and Athabasca Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saturn Oil and Athabasca Oil
The main advantage of trading using opposite Saturn Oil and Athabasca Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saturn Oil position performs unexpectedly, Athabasca 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 Athabasca Oil will offset losses from the drop in Athabasca Oil's long position.| Saturn Oil vs. San Leon Energy | Saturn Oil vs. Enwell Energy plc | Saturn Oil vs. Dno ASA | Saturn Oil vs. Questerre Energy |
| Athabasca Oil vs. Pine Cliff Energy | Athabasca Oil vs. Cardinal Energy | Athabasca Oil vs. Tamarack Valley Energy | Athabasca Oil vs. Saturn Oil Gas |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |