Correlation Between Sintana Energy and Gulf Keystone
Can any of the company-specific risk be diversified away by investing in both Sintana Energy and Gulf Keystone 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 Sintana Energy and Gulf Keystone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sintana Energy and Gulf Keystone Petroleum, you can compare the effects of market volatilities on Sintana Energy and Gulf Keystone 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 Sintana Energy with a short position of Gulf Keystone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sintana Energy and Gulf Keystone.
Diversification Opportunities for Sintana Energy and Gulf Keystone
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sintana and Gulf is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sintana Energy and Gulf Keystone Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Keystone Petroleum and Sintana Energy 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 Sintana Energy are associated (or correlated) with Gulf Keystone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Keystone Petroleum has no effect on the direction of Sintana Energy i.e., Sintana Energy and Gulf Keystone go up and down completely randomly.
Pair Corralation between Sintana Energy and Gulf Keystone
Assuming the 90 days horizon Sintana Energy is expected to under-perform the Gulf Keystone. But the otc stock apears to be less risky and, when comparing its historical volatility, Sintana Energy is 1.3 times less risky than Gulf Keystone. The otc stock trades about -0.47 of its potential returns per unit of risk. The Gulf Keystone Petroleum is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Gulf Keystone Petroleum on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Gulf Keystone Petroleum or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sintana Energy vs. Gulf Keystone Petroleum
Performance |
| Timeline |
| Sintana Energy |
| Gulf Keystone Petroleum |
Sintana Energy and Gulf Keystone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sintana Energy and Gulf Keystone
The main advantage of trading using opposite Sintana Energy and Gulf Keystone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sintana Energy position performs unexpectedly, Gulf Keystone 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 Gulf Keystone will offset losses from the drop in Gulf Keystone's long position.| Sintana Energy vs. Kiwetinohk Energy Corp | Sintana Energy vs. Melbana Energy Limited | Sintana Energy vs. Pancontinental Oil Gas | Sintana Energy vs. Eco Oil Gas |
| Gulf Keystone vs. San Leon Energy | Gulf Keystone vs. Enwell Energy plc | Gulf Keystone vs. Dno ASA | Gulf Keystone 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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