Correlation Between San Leon and Gulf Keystone
Can any of the company-specific risk be diversified away by investing in both San Leon and Gulf Keystone 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 Gulf Keystone 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 Gulf Keystone Petroleum, you can compare the effects of market volatilities on San Leon and Gulf Keystone 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 Gulf Keystone. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Leon and Gulf Keystone.
Diversification Opportunities for San Leon and Gulf Keystone
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between San and Gulf is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Leon Energy and Gulf Keystone Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Keystone Petroleum 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 Gulf Keystone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Keystone Petroleum has no effect on the direction of San Leon i.e., San Leon and Gulf Keystone go up and down completely randomly.
Pair Corralation between San Leon and Gulf Keystone
If you would invest 182.00 in Gulf Keystone Petroleum on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Gulf Keystone Petroleum or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
San Leon Energy vs. Gulf Keystone Petroleum
Performance |
| Timeline |
| San Leon Energy |
| Gulf Keystone Petroleum |
San Leon and Gulf Keystone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Leon and Gulf Keystone
The main advantage of trading using opposite San Leon and Gulf Keystone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Leon position performs unexpectedly, Gulf Keystone 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 Gulf Keystone will offset losses from the drop in Gulf Keystone's long position.| San Leon vs. Permian Resources | San Leon vs. Devon Energy | San Leon vs. EOG Resources | San Leon vs. Coterra Energy |
| Gulf Keystone vs. San Leon Energy | Gulf Keystone vs. Enwell Energy plc | Gulf Keystone vs. Dno ASA | Gulf Keystone vs. Questerre 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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