Correlation Between Sintana Energy and Pantheon Resources
Can any of the company-specific risk be diversified away by investing in both Sintana Energy and Pantheon Resources 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 Pantheon Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sintana Energy and Pantheon Resources Plc, you can compare the effects of market volatilities on Sintana Energy and Pantheon Resources 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 Pantheon Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sintana Energy and Pantheon Resources.
Diversification Opportunities for Sintana Energy and Pantheon Resources
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sintana and Pantheon is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sintana Energy and Pantheon Resources Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantheon Resources Plc 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 Pantheon Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantheon Resources Plc has no effect on the direction of Sintana Energy i.e., Sintana Energy and Pantheon Resources go up and down completely randomly.
Pair Corralation between Sintana Energy and Pantheon Resources
Assuming the 90 days horizon Sintana Energy is expected to under-perform the Pantheon Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Sintana Energy is 1.64 times less risky than Pantheon Resources. The otc stock trades about -0.06 of its potential returns per unit of risk. The Pantheon Resources Plc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Pantheon Resources Plc on August 30, 2024 and sell it today you would earn a total of 5.00 from holding Pantheon Resources Plc or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sintana Energy vs. Pantheon Resources Plc
Performance |
| Timeline |
| Sintana Energy |
| Pantheon Resources Plc |
Sintana Energy and Pantheon Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sintana Energy and Pantheon Resources
The main advantage of trading using opposite Sintana Energy and Pantheon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sintana Energy position performs unexpectedly, Pantheon Resources 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 Pantheon Resources will offset losses from the drop in Pantheon Resources' long position.| Sintana Energy vs. Permian Resources | Sintana Energy vs. Devon Energy | Sintana Energy vs. EOG Resources | Sintana Energy vs. Coterra Energy |
| Pantheon Resources vs. Permian Resources | Pantheon Resources vs. Devon Energy | Pantheon Resources vs. EOG Resources | Pantheon Resources vs. Coterra 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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