Correlation Between Saturn Oil and Freehold Royalties
Can any of the company-specific risk be diversified away by investing in both Saturn Oil and Freehold Royalties 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 Freehold Royalties 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 Freehold Royalties, you can compare the effects of market volatilities on Saturn Oil and Freehold Royalties 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 Freehold Royalties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturn Oil and Freehold Royalties.
Diversification Opportunities for Saturn Oil and Freehold Royalties
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saturn and Freehold is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saturn Oil Gas and Freehold Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freehold Royalties 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 Freehold Royalties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freehold Royalties has no effect on the direction of Saturn Oil i.e., Saturn Oil and Freehold Royalties go up and down completely randomly.
Pair Corralation between Saturn Oil and Freehold Royalties
Assuming the 90 days horizon Saturn Oil Gas is expected to under-perform the Freehold Royalties. In addition to that, Saturn Oil is 2.07 times more volatile than Freehold Royalties. It trades about -0.01 of its total potential returns per unit of risk. Freehold Royalties is currently generating about 0.02 per unit of volatility. If you would invest 954.00 in Freehold Royalties on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Freehold Royalties or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Saturn Oil Gas vs. Freehold Royalties
Performance |
| Timeline |
| Saturn Oil Gas |
| Freehold Royalties |
Saturn Oil and Freehold Royalties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saturn Oil and Freehold Royalties
The main advantage of trading using opposite Saturn Oil and Freehold Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saturn Oil position performs unexpectedly, Freehold Royalties 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 Freehold Royalties will offset losses from the drop in Freehold Royalties' long position.| Saturn Oil vs. San Leon Energy | Saturn Oil vs. Enwell Energy plc | Saturn Oil vs. Dno ASA | Saturn Oil vs. Questerre Energy |
| Freehold Royalties vs. PrairieSky Royalty | Freehold Royalties vs. Tamarack Valley Energy | Freehold Royalties vs. MEG Energy Corp | Freehold Royalties vs. Tourmaline Oil Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |