Correlation Between Bankers Petroleum and S A P
Can any of the company-specific risk be diversified away by investing in both Bankers Petroleum and S A P 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 Bankers Petroleum and S A P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankers Petroleum and Saputo Inc, you can compare the effects of market volatilities on Bankers Petroleum and S A P 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 Bankers Petroleum with a short position of S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankers Petroleum and S A P.
Diversification Opportunities for Bankers Petroleum and S A P
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bankers and SAP is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bankers Petroleum and Saputo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saputo Inc and Bankers 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 Bankers Petroleum are associated (or correlated) with S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saputo Inc has no effect on the direction of Bankers Petroleum i.e., Bankers Petroleum and S A P go up and down completely randomly.
Pair Corralation between Bankers Petroleum and S A P
Assuming the 90 days trading horizon Bankers Petroleum is expected to generate 31.82 times less return on investment than S A P. But when comparing it to its historical volatility, Bankers Petroleum is 1.4 times less risky than S A P. It trades about 0.01 of its potential returns per unit of risk. Saputo Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,400 in Saputo Inc on August 27, 2025 and sell it today you would earn a total of 470.00 from holding Saputo Inc or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankers Petroleum vs. Saputo Inc
Performance |
| Timeline |
| Bankers Petroleum |
| Saputo Inc |
Bankers Petroleum and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankers Petroleum and S A P
The main advantage of trading using opposite Bankers Petroleum and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankers Petroleum position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.| Bankers Petroleum vs. Brookfield Asset Management | Bankers Petroleum vs. Big Rock Brewery | Bankers Petroleum vs. Dream Industrial Real | Bankers Petroleum vs. Highwood Asset Management |
| S A P vs. Western Investment | S A P vs. Wilmington Capital Management | S A P vs. Constellation Software | S A P vs. Element Fleet Management |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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