Correlation Between Pingtan Marine and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Pingtan Marine and Sable Offshore 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 Pingtan Marine and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pingtan Marine Enterprise and Sable Offshore Corp, you can compare the effects of market volatilities on Pingtan Marine and Sable Offshore 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 Pingtan Marine with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pingtan Marine and Sable Offshore.
Diversification Opportunities for Pingtan Marine and Sable Offshore
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pingtan and Sable is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Pingtan Marine Enterprise and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and Pingtan Marine 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 Pingtan Marine Enterprise are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Pingtan Marine i.e., Pingtan Marine and Sable Offshore go up and down completely randomly.
Pair Corralation between Pingtan Marine and Sable Offshore
If you would invest 2,053 in Sable Offshore Corp on October 9, 2024 and sell it today you would earn a total of 325.00 from holding Sable Offshore Corp or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Pingtan Marine Enterprise vs. Sable Offshore Corp
Performance |
| Timeline |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sable Offshore Corp |
Pingtan Marine and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pingtan Marine and Sable Offshore
The main advantage of trading using opposite Pingtan Marine and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pingtan Marine position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| Pingtan Marine vs. Ecovyst | Pingtan Marine vs. The Mosaic | Pingtan Marine vs. Micron Technology | Pingtan Marine vs. IPG Photonics |
| Sable Offshore vs. Toro | Sable Offshore vs. Turning Point Brands | Sable Offshore vs. Philip Morris International | Sable Offshore vs. Willamette Valley Vineyards |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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