Correlation Between Energold Drilling and Sable Offshore

Can any of the company-specific risk be diversified away by investing in both Energold Drilling and Sable Offshore 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 Energold Drilling and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Energold Drilling Corp and Sable Offshore Corp, you can compare the effects of market volatilities on Energold Drilling 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 Energold Drilling with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energold Drilling and Sable Offshore.

Diversification Opportunities for Energold Drilling and Sable Offshore

0.0

Correlation Coefficient

Energold Drilling  Sable Offshore

Pay attention - limited upside

The 3 months correlation between Energold and Sable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energold Drilling Corp 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 Energold Drilling 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 Energold Drilling Corp 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 Energold Drilling i.e., Energold Drilling and Sable Offshore go up and down completely randomly.

Pair Corralation between Energold Drilling and Sable Offshore

If you would invest  2,431  in Sable Offshore Corp on October 26, 2024 and sell it today you would earn a total of  464.00  from holding Sable Offshore Corp or generate 19.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Energold Drilling Corp  vs.  Sable Offshore Corp

Energold Drilling Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Sable Offshore Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sable Offshore Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Sable Offshore exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Energold Drilling and Sable Offshore

The main advantage of trading using opposite Energold Drilling and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energold Drilling 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.

The idea behind Energold Drilling Corp and Sable Offshore Corp 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.