Correlation Between Sable Offshore and Bank of New York
Can any of the company-specific risk be diversified away by investing in both Sable Offshore and Bank of New York 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 Bank of New York 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 Bank of New, you can compare the effects of market volatilities on Sable Offshore and Bank of New York 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 Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Bank of New York.
Diversification Opportunities for Sable Offshore and Bank of New York
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sable and Bank is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Bank of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York 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 Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Sable Offshore i.e., Sable Offshore and Bank of New York go up and down completely randomly.
Pair Corralation between Sable Offshore and Bank of New York
Considering the 90-day investment horizon Sable Offshore Corp is expected to generate 2.94 times more return on investment than Bank of New York. However, Sable Offshore is 2.94 times more volatile than Bank of New. It trades about 0.08 of its potential returns per unit of risk. Bank of New is currently generating about 0.16 per unit of risk. If you would invest 1,019 in Sable Offshore Corp on September 3, 2024 and sell it today you would earn a total of 1,329 from holding Sable Offshore Corp or generate 130.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.89% |
| Values | Daily Returns |
Sable Offshore Corp vs. Bank of New
Performance |
| Timeline |
| Sable Offshore Corp |
| Bank of New York |
Sable Offshore and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and Bank of New York
The main advantage of trading using opposite Sable Offshore and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| Sable Offshore vs. Dine Brands Global | Sable Offshore vs. RCI Hospitality Holdings | Sable Offshore vs. Sweetgreen | Sable Offshore vs. Dennys Corp |
| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |