Correlation Between ShaMaran Petroleum and Altura Energy
Can any of the company-specific risk be diversified away by investing in both ShaMaran Petroleum and Altura 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 ShaMaran Petroleum and Altura Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ShaMaran Petroleum Corp and Altura Energy, you can compare the effects of market volatilities on ShaMaran Petroleum and Altura 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 ShaMaran Petroleum with a short position of Altura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShaMaran Petroleum and Altura Energy.
Diversification Opportunities for ShaMaran Petroleum and Altura Energy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ShaMaran and Altura is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ShaMaran Petroleum Corp and Altura Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altura Energy and ShaMaran Petroleum 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 ShaMaran Petroleum Corp are associated (or correlated) with Altura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altura Energy has no effect on the direction of ShaMaran Petroleum i.e., ShaMaran Petroleum and Altura Energy go up and down completely randomly.
Pair Corralation between ShaMaran Petroleum and Altura Energy
Assuming the 90 days horizon ShaMaran Petroleum Corp is expected to generate 2.05 times more return on investment than Altura Energy. However, ShaMaran Petroleum is 2.05 times more volatile than Altura Energy. It trades about 0.06 of its potential returns per unit of risk. Altura Energy is currently generating about 0.1 per unit of risk. If you would invest 6.00 in ShaMaran Petroleum Corp on September 3, 2024 and sell it today you would earn a total of 3.00 from holding ShaMaran Petroleum Corp or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ShaMaran Petroleum Corp vs. Altura Energy
Performance |
| Timeline |
| ShaMaran Petroleum Corp |
| Altura Energy |
ShaMaran Petroleum and Altura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ShaMaran Petroleum and Altura Energy
The main advantage of trading using opposite ShaMaran Petroleum and Altura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShaMaran Petroleum position performs unexpectedly, Altura 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 Altura Energy will offset losses from the drop in Altura Energy's long position.| ShaMaran Petroleum vs. PetroShale | ShaMaran Petroleum vs. Africa Energy Corp | ShaMaran Petroleum vs. Horizon Oil Limited | ShaMaran Petroleum vs. Saturn Oil Gas |
| Altura Energy vs. AER Energy Resources | Altura Energy vs. Alamo Energy Corp | Altura Energy vs. Arete Industries | Altura Energy vs. Barrister Energy LLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |