Correlation Between Sable Offshore and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Sable Offshore and Univest Pennsylvania 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 Univest Pennsylvania 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 Univest Pennsylvania, you can compare the effects of market volatilities on Sable Offshore and Univest Pennsylvania 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 Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Univest Pennsylvania.
Diversification Opportunities for Sable Offshore and Univest Pennsylvania
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sable and Univest is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Sable Offshore i.e., Sable Offshore and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between Sable Offshore and Univest Pennsylvania
Considering the 90-day investment horizon Sable Offshore Corp is expected to generate 1.98 times more return on investment than Univest Pennsylvania. However, Sable Offshore is 1.98 times more volatile than Univest Pennsylvania. It trades about 0.08 of its potential returns per unit of risk. Univest Pennsylvania is currently generating about 0.1 per unit of risk. If you would invest 1,083 in Sable Offshore Corp on September 4, 2024 and sell it today you would earn a total of 1,041 from holding Sable Offshore Corp or generate 96.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sable Offshore Corp vs. Univest Pennsylvania
Performance |
| Timeline |
| Sable Offshore Corp |
| Univest Pennsylvania |
Sable Offshore and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and Univest Pennsylvania
The main advantage of trading using opposite Sable Offshore and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania's long position.| Sable Offshore vs. Helmerich and Payne | Sable Offshore vs. Noble plc | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Precision Drilling |
| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic Bancorp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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