Correlation Between Calima Energy and San Juan

Can any of the company-specific risk be diversified away by investing in both Calima Energy and San Juan 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 Calima Energy and San Juan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calima Energy Limited and San Juan Basin, you can compare the effects of market volatilities on Calima Energy and San Juan 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 Calima Energy with a short position of San Juan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calima Energy and San Juan.

Diversification Opportunities for Calima Energy and San Juan

0.0

Correlation Coefficient

Calima Energy  San Juan

Pay attention - limited upside

The 3 months correlation between Calima and San is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calima Energy Limited and San Juan Basin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Juan Basin and Calima Energy 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 Calima Energy Limited are associated (or correlated) with San Juan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Juan Basin has no effect on the direction of Calima Energy i.e., Calima Energy and San Juan go up and down completely randomly.

Pair Corralation between Calima Energy and San Juan

If you would invest  378.00  in San Juan Basin on October 27, 2024 and sell it today you would earn a total of  57.00  from holding San Juan Basin or generate 15.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Calima Energy Limited  vs.  San Juan Basin

Calima Energy Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calima Energy Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Calima Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

San Juan Basin

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in San Juan Basin are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward-looking indicators, San Juan may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Calima Energy and San Juan

The main advantage of trading using opposite Calima Energy and San Juan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calima Energy position performs unexpectedly, San Juan 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 San Juan will offset losses from the drop in San Juan's long position.

The idea behind Calima Energy Limited and San Juan Basin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..