Correlation Between San Leon and ARC Resources
Can any of the company-specific risk be diversified away by investing in both San Leon and ARC 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 San Leon and ARC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Leon Energy and ARC Resources, you can compare the effects of market volatilities on San Leon and ARC 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 San Leon with a short position of ARC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Leon and ARC Resources.
Diversification Opportunities for San Leon and ARC Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between San and ARC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Leon Energy and ARC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARC Resources and San Leon 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 San Leon Energy are associated (or correlated) with ARC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARC Resources has no effect on the direction of San Leon i.e., San Leon and ARC Resources go up and down completely randomly.
Pair Corralation between San Leon and ARC Resources
If you would invest 1,135 in ARC Resources on September 1, 2024 and sell it today you would earn a total of 0.00 from holding ARC Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
San Leon Energy vs. ARC Resources
Performance |
| Timeline |
| San Leon Energy |
| ARC Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
San Leon and ARC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Leon and ARC Resources
The main advantage of trading using opposite San Leon and ARC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Leon position performs unexpectedly, ARC 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 ARC Resources will offset losses from the drop in ARC Resources' long position.| San Leon vs. Horizon Oil Limited | San Leon vs. PetroShale | San Leon vs. Enwell Energy plc | San Leon vs. Tullow Oil plc |
| ARC Resources vs. Freehold Royalties | ARC Resources vs. Capricorn Energy PLC | ARC Resources vs. Laredo Oil | ARC Resources vs. Athabasca Oil Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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