Correlation Between Santa Fe and Invictus Energy
Can any of the company-specific risk be diversified away by investing in both Santa Fe and Invictus 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 Santa Fe and Invictus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santa Fe Petroleum and Invictus Energy Limited, you can compare the effects of market volatilities on Santa Fe and Invictus 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 Santa Fe with a short position of Invictus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santa Fe and Invictus Energy.
Diversification Opportunities for Santa Fe and Invictus Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Santa and Invictus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santa Fe Petroleum and Invictus Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invictus Energy and Santa Fe 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 Santa Fe Petroleum are associated (or correlated) with Invictus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invictus Energy has no effect on the direction of Santa Fe i.e., Santa Fe and Invictus Energy go up and down completely randomly.
Pair Corralation between Santa Fe and Invictus Energy
If you would invest 4.35 in Invictus Energy Limited on October 14, 2024 and sell it today you would earn a total of 0.64 from holding Invictus Energy Limited or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santa Fe Petroleum vs. Invictus Energy Limited
Performance |
| Timeline |
| Santa Fe Petroleum |
| Invictus Energy |
Santa Fe and Invictus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santa Fe and Invictus Energy
The main advantage of trading using opposite Santa Fe and Invictus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santa Fe position performs unexpectedly, Invictus 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 Invictus Energy will offset losses from the drop in Invictus Energy's long position.| Santa Fe vs. Kiwetinohk Energy Corp | Santa Fe vs. Melbana Energy Limited | Santa Fe vs. Pancontinental Oil Gas | Santa Fe vs. Eco Oil Gas |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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