Correlation Between San Leon and ShaMaran Petroleum
Can any of the company-specific risk be diversified away by investing in both San Leon and ShaMaran Petroleum 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 ShaMaran Petroleum 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 ShaMaran Petroleum Corp, you can compare the effects of market volatilities on San Leon and ShaMaran Petroleum 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 ShaMaran Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Leon and ShaMaran Petroleum.
Diversification Opportunities for San Leon and ShaMaran Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between San and ShaMaran is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Leon Energy and ShaMaran Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShaMaran Petroleum Corp 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 ShaMaran Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShaMaran Petroleum Corp has no effect on the direction of San Leon i.e., San Leon and ShaMaran Petroleum go up and down completely randomly.
Pair Corralation between San Leon and ShaMaran Petroleum
If you would invest 5.00 in ShaMaran Petroleum Corp on August 28, 2024 and sell it today you would earn a total of 4.00 from holding ShaMaran Petroleum Corp or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Leon Energy vs. ShaMaran Petroleum Corp
Performance |
| Timeline |
| San Leon Energy |
| ShaMaran Petroleum Corp |
San Leon and ShaMaran Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Leon and ShaMaran Petroleum
The main advantage of trading using opposite San Leon and ShaMaran Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Leon position performs unexpectedly, ShaMaran Petroleum 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 ShaMaran Petroleum will offset losses from the drop in ShaMaran Petroleum's long position.| San Leon vs. Permian Resources | San Leon vs. Devon Energy | San Leon vs. EOG Resources | San Leon vs. Coterra Energy |
| ShaMaran Petroleum vs. Petroleo Brasileiro Petrobras | ShaMaran Petroleum vs. Equinor ASA ADR | ShaMaran Petroleum vs. Eni SpA ADR | ShaMaran Petroleum vs. YPF Sociedad Anonima |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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