Correlation Between SilverBow Resources and Epsilon Energy
Can any of the company-specific risk be diversified away by investing in both SilverBow Resources and Epsilon 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 SilverBow Resources and Epsilon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverBow Resources and Epsilon Energy, you can compare the effects of market volatilities on SilverBow Resources and Epsilon 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 SilverBow Resources with a short position of Epsilon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverBow Resources and Epsilon Energy.
Diversification Opportunities for SilverBow Resources and Epsilon Energy
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SilverBow and Epsilon is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SilverBow Resources and Epsilon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epsilon Energy and SilverBow Resources 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 SilverBow Resources are associated (or correlated) with Epsilon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epsilon Energy has no effect on the direction of SilverBow Resources i.e., SilverBow Resources and Epsilon Energy go up and down completely randomly.
Pair Corralation between SilverBow Resources and Epsilon Energy
Given the investment horizon of 90 days SilverBow Resources is expected to under-perform the Epsilon Energy. In addition to that, SilverBow Resources is 7.44 times more volatile than Epsilon Energy. It trades about -0.16 of its total potential returns per unit of risk. Epsilon Energy is currently generating about 0.06 per unit of volatility. If you would invest 530.00 in Epsilon Energy on August 24, 2024 and sell it today you would earn a total of 72.00 from holding Epsilon Energy or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 36.0% |
| Values | Daily Returns |
SilverBow Resources vs. Epsilon Energy
Performance |
| Timeline |
| SilverBow Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Epsilon Energy |
SilverBow Resources and Epsilon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SilverBow Resources and Epsilon Energy
The main advantage of trading using opposite SilverBow Resources and Epsilon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverBow Resources position performs unexpectedly, Epsilon 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 Epsilon Energy will offset losses from the drop in Epsilon Energy's long position.| SilverBow Resources vs. Vital Energy | SilverBow Resources vs. Permian Resources | SilverBow Resources vs. Magnolia Oil Gas | SilverBow Resources vs. Ring Energy |
| Epsilon Energy vs. Vaalco Energy | Epsilon Energy vs. PHX Minerals | Epsilon Energy vs. Northern Oil Gas | Epsilon Energy vs. Granite Ridge Resources |
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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance |