Correlation Between Saturn Oil and BPI Energy
Can any of the company-specific risk be diversified away by investing in both Saturn Oil and BPI Energy 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 BPI Energy 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 BPI Energy Holdings, you can compare the effects of market volatilities on Saturn Oil and BPI Energy 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 BPI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturn Oil and BPI Energy.
Diversification Opportunities for Saturn Oil and BPI Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saturn and BPI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saturn Oil Gas and BPI Energy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPI Energy Holdings 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 BPI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPI Energy Holdings has no effect on the direction of Saturn Oil i.e., Saturn Oil and BPI Energy go up and down completely randomly.
Pair Corralation between Saturn Oil and BPI Energy
If you would invest 169.00 in Saturn Oil Gas on August 31, 2024 and sell it today you would lose (12.00) from holding Saturn Oil Gas or give up 7.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.25% |
| Values | Daily Returns |
Saturn Oil Gas vs. BPI Energy Holdings
Performance |
| Timeline |
| Saturn Oil Gas |
| BPI Energy Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saturn Oil and BPI Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saturn Oil and BPI Energy
The main advantage of trading using opposite Saturn Oil and BPI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saturn Oil position performs unexpectedly, BPI Energy 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 BPI Energy will offset losses from the drop in BPI Energy'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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