Correlation Between Sable Offshore and GetSwift Technologies

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

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

Diversification Opportunities for Sable Offshore and GetSwift Technologies

0.0

Correlation Coefficient

Sable Offshore  GetSwift Technologies

Pay attention - limited upside

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

Pair Corralation between Sable Offshore and GetSwift Technologies

If you would invest  2,140  in Sable Offshore Corp on October 26, 2024 and sell it today you would earn a total of  686.00  from holding Sable Offshore Corp or generate 32.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Sable Offshore Corp  vs.  GetSwift Technologies Limited

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.

GetSwift Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GetSwift Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GetSwift Technologies is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Sable Offshore and GetSwift Technologies

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

The idea behind Sable Offshore Corp and GetSwift Technologies Limited 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.