Correlation Between Sabio Holdings and Obsidian Energy
Can any of the company-specific risk be diversified away by investing in both Sabio Holdings and Obsidian 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 Sabio Holdings and Obsidian Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabio Holdings and Obsidian Energy, you can compare the effects of market volatilities on Sabio Holdings and Obsidian 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 Sabio Holdings with a short position of Obsidian Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabio Holdings and Obsidian Energy.
Diversification Opportunities for Sabio Holdings and Obsidian Energy
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabio and Obsidian is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sabio Holdings and Obsidian Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Obsidian Energy and Sabio Holdings 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 Sabio Holdings are associated (or correlated) with Obsidian Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Obsidian Energy has no effect on the direction of Sabio Holdings i.e., Sabio Holdings and Obsidian Energy go up and down completely randomly.
Pair Corralation between Sabio Holdings and Obsidian Energy
Assuming the 90 days trading horizon Sabio Holdings is expected to generate 1.09 times more return on investment than Obsidian Energy. However, Sabio Holdings is 1.09 times more volatile than Obsidian Energy. It trades about 0.28 of its potential returns per unit of risk. Obsidian Energy is currently generating about -0.14 per unit of risk. If you would invest 51.00 in Sabio Holdings on November 18, 2024 and sell it today you would earn a total of 9.00 from holding Sabio Holdings or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabio Holdings vs. Obsidian Energy
Performance |
| Timeline |
| Sabio Holdings |
| Obsidian Energy |
Sabio Holdings and Obsidian Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabio Holdings and Obsidian Energy
The main advantage of trading using opposite Sabio Holdings and Obsidian Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabio Holdings position performs unexpectedly, Obsidian 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 Obsidian Energy will offset losses from the drop in Obsidian Energy's long position.| Sabio Holdings vs. Magna Mining | Sabio Holdings vs. Canadian General Investments | Sabio Holdings vs. Plaza Retail REIT | Sabio Holdings vs. Marimaca Copper Corp |
| Obsidian Energy vs. Bonterra Energy Corp | Obsidian Energy vs. Cardinal Energy | Obsidian Energy vs. Surge Energy | Obsidian Energy vs. InPlay 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |