Correlation Between Saturn Oil and Pine Cliff
Can any of the company-specific risk be diversified away by investing in both Saturn Oil and Pine Cliff 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 Pine Cliff 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 Pine Cliff Energy, you can compare the effects of market volatilities on Saturn Oil and Pine Cliff 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 Pine Cliff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturn Oil and Pine Cliff.
Diversification Opportunities for Saturn Oil and Pine Cliff
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saturn and Pine is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Saturn Oil Gas and Pine Cliff Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pine Cliff Energy 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 Pine Cliff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pine Cliff Energy has no effect on the direction of Saturn Oil i.e., Saturn Oil and Pine Cliff go up and down completely randomly.
Pair Corralation between Saturn Oil and Pine Cliff
Assuming the 90 days horizon Saturn Oil Gas is expected to under-perform the Pine Cliff. But the otc stock apears to be less risky and, when comparing its historical volatility, Saturn Oil Gas is 1.03 times less risky than Pine Cliff. The otc stock trades about -0.01 of its potential returns per unit of risk. The Pine Cliff Energy is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Pine Cliff Energy on September 1, 2024 and sell it today you would lose (7.00) from holding Pine Cliff Energy or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Saturn Oil Gas vs. Pine Cliff Energy
Performance |
| Timeline |
| Saturn Oil Gas |
| Pine Cliff Energy |
Saturn Oil and Pine Cliff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saturn Oil and Pine Cliff
The main advantage of trading using opposite Saturn Oil and Pine Cliff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saturn Oil position performs unexpectedly, Pine Cliff 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 Pine Cliff will offset losses from the drop in Pine Cliff'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 |
| Pine Cliff vs. Athabasca Oil Corp | Pine Cliff vs. Cardinal Energy | Pine Cliff vs. Tamarack Valley Energy | Pine Cliff 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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