Correlation Between Sintana Energy and Saturn Oil
Can any of the company-specific risk be diversified away by investing in both Sintana Energy and Saturn Oil 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 Sintana Energy and Saturn Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sintana Energy and Saturn Oil Gas, you can compare the effects of market volatilities on Sintana Energy and Saturn Oil 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 Sintana Energy with a short position of Saturn Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sintana Energy and Saturn Oil.
Diversification Opportunities for Sintana Energy and Saturn Oil
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sintana and Saturn is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sintana Energy and Saturn Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saturn Oil Gas and Sintana 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 Sintana Energy are associated (or correlated) with Saturn Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saturn Oil Gas has no effect on the direction of Sintana Energy i.e., Sintana Energy and Saturn Oil go up and down completely randomly.
Pair Corralation between Sintana Energy and Saturn Oil
Assuming the 90 days horizon Sintana Energy is expected to generate 2.0 times more return on investment than Saturn Oil. However, Sintana Energy is 2.0 times more volatile than Saturn Oil Gas. It trades about -0.06 of its potential returns per unit of risk. Saturn Oil Gas is currently generating about -0.12 per unit of risk. If you would invest 80.00 in Sintana Energy on December 5, 2024 and sell it today you would lose (30.00) from holding Sintana Energy or give up 37.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.19% |
Values | Daily Returns |
Sintana Energy vs. Saturn Oil Gas
Performance |
Timeline |
Sintana Energy |
Saturn Oil Gas |
Sintana Energy and Saturn Oil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sintana Energy and Saturn Oil
The main advantage of trading using opposite Sintana Energy and Saturn Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sintana Energy position performs unexpectedly, Saturn Oil 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 Saturn Oil will offset losses from the drop in Saturn Oil's long position.Sintana Energy vs. Kiwetinohk Energy Corp | Sintana Energy vs. Melbana Energy Limited | Sintana Energy vs. Pancontinental Oil Gas | Sintana Energy vs. Eco Oil Gas |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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