Correlation Between San Leon and Southern Cross
Can any of the company-specific risk be diversified away by investing in both San Leon and Southern Cross 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 Southern Cross 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 Southern Cross Media, you can compare the effects of market volatilities on San Leon and Southern Cross 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 Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Leon and Southern Cross.
Diversification Opportunities for San Leon and Southern Cross
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between San and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Leon Energy and Southern Cross Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Media 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 Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Media has no effect on the direction of San Leon i.e., San Leon and Southern Cross go up and down completely randomly.
Pair Corralation between San Leon and Southern Cross
Assuming the 90 days horizon San Leon Energy is expected to generate 0.23 times more return on investment than Southern Cross. However, San Leon Energy is 4.28 times less risky than Southern Cross. It trades about -0.04 of its potential returns per unit of risk. Southern Cross Media is currently generating about -0.04 per unit of risk. If you would invest 40.00 in San Leon Energy on November 19, 2024 and sell it today you would lose (10.00) from holding San Leon Energy or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
San Leon Energy vs. Southern Cross Media
Performance |
| Timeline |
| San Leon Energy |
| Southern Cross Media |
San Leon and Southern Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Leon and Southern Cross
The main advantage of trading using opposite San Leon and Southern Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Leon position performs unexpectedly, Southern Cross 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 Southern Cross will offset losses from the drop in Southern Cross' long position.| San Leon vs. Horizon Oil Limited | San Leon vs. PetroShale | San Leon vs. Enwell Energy plc | San Leon vs. Tullow Oil plc |
| Southern Cross vs. Pieridae Energy Limited | Southern Cross vs. Prospera Energy | Southern Cross vs. Ngx Energy International | Southern Cross 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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