Correlation Between ShaMaran Petroleum and Hurricane Energy

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

By analyzing existing cross correlation between ShaMaran Petroleum Corp and Hurricane Energy Plc, you can compare the effects of market volatilities on ShaMaran Petroleum and Hurricane Energy 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 ShaMaran Petroleum with a short position of Hurricane Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShaMaran Petroleum and Hurricane Energy.

Diversification Opportunities for ShaMaran Petroleum and Hurricane Energy

0.0

Correlation Coefficient

ShaMaran Petroleum  Hurricane Energy

Pay attention - limited upside

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

Pair Corralation between ShaMaran Petroleum and Hurricane Energy

If you would invest  8.00  in ShaMaran Petroleum Corp on December 30, 2024 and sell it today you would earn a total of  8.00  from holding ShaMaran Petroleum Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ShaMaran Petroleum Corp  vs.  Hurricane Energy Plc

ShaMaran Petroleum Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ShaMaran Petroleum Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ShaMaran Petroleum reported solid returns over the last few months and may actually be approaching a breakup point.

Hurricane Energy Plc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ShaMaran Petroleum and Hurricane Energy

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

The idea behind ShaMaran Petroleum Corp and Hurricane Energy Plc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.