Correlation Between Sable Offshore and Allient
Can any of the company-specific risk be diversified away by investing in both Sable Offshore and Allient 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 Sable Offshore and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sable Offshore Corp and Allient, you can compare the effects of market volatilities on Sable Offshore and Allient 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 Sable Offshore with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Allient.
Diversification Opportunities for Sable Offshore and Allient
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sable and Allient is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and Sable Offshore 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 Sable Offshore Corp are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Sable Offshore i.e., Sable Offshore and Allient go up and down completely randomly.
Pair Corralation between Sable Offshore and Allient
Considering the 90-day investment horizon Sable Offshore Corp is expected to under-perform the Allient. In addition to that, Sable Offshore is 2.87 times more volatile than Allient. It trades about -0.12 of its total potential returns per unit of risk. Allient is currently generating about 0.3 per unit of volatility. If you would invest 2,447 in Allient on September 14, 2024 and sell it today you would earn a total of 246.00 from holding Allient or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sable Offshore Corp vs. Allient
Performance |
| Timeline |
| Sable Offshore Corp |
| Allient |
Sable Offshore and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and Allient
The main advantage of trading using opposite Sable Offshore and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| Sable Offshore vs. Abcellera Biologics | Sable Offshore vs. Lipocine | Sable Offshore vs. Apogee Therapeutics, Common | Sable Offshore vs. BioNTech SE |
| Allient vs. Entravision Communications | Allient vs. Marchex | Allient vs. Sable Offshore Corp | Allient vs. CarsalesCom Ltd ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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