Correlation Between MASCO and Sable Offshore
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By analyzing existing cross correlation between MASCO P 775 and Sable Offshore Corp, you can compare the effects of market volatilities on MASCO and Sable Offshore 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 MASCO with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASCO and Sable Offshore.
Diversification Opportunities for MASCO and Sable Offshore
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MASCO and Sable is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding MASCO P 775 and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and MASCO 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 MASCO P 775 are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of MASCO i.e., MASCO and Sable Offshore go up and down completely randomly.
Pair Corralation between MASCO and Sable Offshore
Assuming the 90 days trading horizon MASCO is expected to generate 22.85 times less return on investment than Sable Offshore. But when comparing it to its historical volatility, MASCO P 775 is 2.86 times less risky than Sable Offshore. It trades about 0.01 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Sable Offshore Corp on September 14, 2024 and sell it today you would earn a total of 992.00 from holding Sable Offshore Corp or generate 98.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
MASCO P 775 vs. Sable Offshore Corp
Performance |
| Timeline |
| MASCO P 775 |
| Sable Offshore Corp |
MASCO and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MASCO and Sable Offshore
The main advantage of trading using opposite MASCO and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASCO position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| MASCO vs. Sable Offshore Corp | MASCO vs. Vestis | MASCO vs. Nok Airlines Public | MASCO vs. Patterson UTI Energy |
| Sable Offshore vs. Abcellera Biologics | Sable Offshore vs. Lipocine | Sable Offshore vs. Apogee Therapeutics, Common | Sable Offshore vs. BioNTech SE |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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