Correlation Between San Juan and 1st NRG
Can any of the company-specific risk be diversified away by investing in both San Juan and 1st NRG 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 San Juan and 1st NRG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Juan Basin and 1st NRG Corp, you can compare the effects of market volatilities on San Juan and 1st NRG 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 San Juan with a short position of 1st NRG. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Juan and 1st NRG.
Diversification Opportunities for San Juan and 1st NRG
Pay attention - limited upside
The 3 months correlation between San and 1st is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Juan Basin and 1st NRG Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1st NRG Corp and San Juan 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 San Juan Basin are associated (or correlated) with 1st NRG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1st NRG Corp has no effect on the direction of San Juan i.e., San Juan and 1st NRG go up and down completely randomly.
Pair Corralation between San Juan and 1st NRG
If you would invest 417.00 in San Juan Basin on December 2, 2024 and sell it today you would earn a total of 84.00 from holding San Juan Basin or generate 20.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
San Juan Basin vs. 1st NRG Corp
Performance |
Timeline |
San Juan Basin |
1st NRG Corp |
San Juan and 1st NRG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with San Juan and 1st NRG
The main advantage of trading using opposite San Juan and 1st NRG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Juan position performs unexpectedly, 1st NRG 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 1st NRG will offset losses from the drop in 1st NRG's long position.San Juan vs. Sabine Royalty Trust | San Juan vs. Permian Basin Royalty | San Juan vs. Cross Timbers Royalty | San Juan vs. Mesa Royalty Trust |
1st NRG vs. SDX Energy plc | 1st NRG vs. Petro Viking Energy | 1st NRG vs. Otto Energy Limited | 1st NRG vs. International Petroleum |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |