Correlation Between SilverBow Resources and Santa Fe
Can any of the company-specific risk be diversified away by investing in both SilverBow Resources and Santa Fe 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 Santa Fe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverBow Resources and Santa Fe Petroleum, you can compare the effects of market volatilities on SilverBow Resources and Santa Fe 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 Santa Fe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverBow Resources and Santa Fe.
Diversification Opportunities for SilverBow Resources and Santa Fe
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SilverBow and Santa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SilverBow Resources and Santa Fe Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santa Fe Petroleum 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 Santa Fe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santa Fe Petroleum has no effect on the direction of SilverBow Resources i.e., SilverBow Resources and Santa Fe go up and down completely randomly.
Pair Corralation between SilverBow Resources and Santa Fe
If you would invest 0.01 in Santa Fe Petroleum on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Santa Fe Petroleum or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SilverBow Resources vs. Santa Fe Petroleum
Performance |
| Timeline |
| SilverBow Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Santa Fe Petroleum |
SilverBow Resources and Santa Fe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SilverBow Resources and Santa Fe
The main advantage of trading using opposite SilverBow Resources and Santa Fe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverBow Resources position performs unexpectedly, Santa Fe 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 Santa Fe will offset losses from the drop in Santa Fe's long position.| SilverBow Resources vs. Vital Energy | SilverBow Resources vs. Permian Resources | SilverBow Resources vs. Magnolia Oil Gas | SilverBow Resources vs. Ring Energy |
| Santa Fe vs. Barrister Energy LLC | Santa Fe vs. Buru Energy Limited | Santa Fe vs. Altura Energy | Santa Fe vs. Daybreak Oil and |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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