Correlation Between SilverBow Resources and Inpex Corp
Can any of the company-specific risk be diversified away by investing in both SilverBow Resources and Inpex Corp 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 Inpex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverBow Resources and Inpex Corp ADR, you can compare the effects of market volatilities on SilverBow Resources and Inpex Corp 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 Inpex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverBow Resources and Inpex Corp.
Diversification Opportunities for SilverBow Resources and Inpex Corp
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SilverBow and Inpex is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SilverBow Resources and Inpex Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpex Corp ADR 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 Inpex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpex Corp ADR has no effect on the direction of SilverBow Resources i.e., SilverBow Resources and Inpex Corp go up and down completely randomly.
Pair Corralation between SilverBow Resources and Inpex Corp
If you would invest (100.00) in SilverBow Resources on November 3, 2024 and sell it today you would earn a total of 100.00 from holding SilverBow Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
SilverBow Resources vs. Inpex Corp ADR
Performance |
| Timeline |
| SilverBow Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inpex Corp ADR |
SilverBow Resources and Inpex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SilverBow Resources and Inpex Corp
The main advantage of trading using opposite SilverBow Resources and Inpex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverBow Resources position performs unexpectedly, Inpex Corp 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 Inpex Corp will offset losses from the drop in Inpex Corp's long position.| SilverBow Resources vs. Vital Energy | SilverBow Resources vs. Permian Resources | SilverBow Resources vs. Magnolia Oil Gas | SilverBow Resources vs. Ring Energy |
| Inpex Corp vs. San Leon Energy | Inpex Corp vs. Enwell Energy plc | Inpex Corp vs. Dno ASA | Inpex Corp vs. Questerre Energy |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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