Correlation Between ShaMaran Petroleum and GulfSlope Energy
Can any of the company-specific risk be diversified away by investing in both ShaMaran Petroleum and GulfSlope 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 GulfSlope 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 GulfSlope Energy, you can compare the effects of market volatilities on ShaMaran Petroleum and GulfSlope 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 GulfSlope Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShaMaran Petroleum and GulfSlope Energy.
Diversification Opportunities for ShaMaran Petroleum and GulfSlope Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ShaMaran and GulfSlope is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ShaMaran Petroleum Corp and GulfSlope Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GulfSlope 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 GulfSlope Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GulfSlope Energy has no effect on the direction of ShaMaran Petroleum i.e., ShaMaran Petroleum and GulfSlope Energy go up and down completely randomly.
Pair Corralation between ShaMaran Petroleum and GulfSlope Energy
If you would invest 9.00 in ShaMaran Petroleum Corp on December 1, 2024 and sell it today you would earn a total of 5.00 from holding ShaMaran Petroleum Corp or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ShaMaran Petroleum Corp vs. GulfSlope Energy
Performance |
| Timeline |
| ShaMaran Petroleum Corp |
| GulfSlope Energy |
ShaMaran Petroleum and GulfSlope Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ShaMaran Petroleum and GulfSlope Energy
The main advantage of trading using opposite ShaMaran Petroleum and GulfSlope Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShaMaran Petroleum position performs unexpectedly, GulfSlope 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 GulfSlope Energy will offset losses from the drop in GulfSlope 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 |
| GulfSlope Energy vs. PEDEVCO Corp | GulfSlope Energy vs. Ring Energy | GulfSlope Energy vs. Occidental Petroleum | GulfSlope Energy vs. Foothills Exploration |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |