Correlation Between Saga Pure and MPC Energy
Can any of the company-specific risk be diversified away by investing in both Saga Pure and MPC 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 Saga Pure and MPC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saga Pure ASA and MPC Energy Solutions, you can compare the effects of market volatilities on Saga Pure and MPC 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 Saga Pure with a short position of MPC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saga Pure and MPC Energy.
Diversification Opportunities for Saga Pure and MPC Energy
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saga and MPC is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Saga Pure ASA and MPC Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Energy Solutions and Saga Pure 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 Saga Pure ASA are associated (or correlated) with MPC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Energy Solutions has no effect on the direction of Saga Pure i.e., Saga Pure and MPC Energy go up and down completely randomly.
Pair Corralation between Saga Pure and MPC Energy
Assuming the 90 days trading horizon Saga Pure ASA is expected to generate 0.32 times more return on investment than MPC Energy. However, Saga Pure ASA is 3.11 times less risky than MPC Energy. It trades about 0.05 of its potential returns per unit of risk. MPC Energy Solutions is currently generating about -0.18 per unit of risk. If you would invest 133.00 in Saga Pure ASA on July 20, 2025 and sell it today you would earn a total of 2.00 from holding Saga Pure ASA or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saga Pure ASA vs. MPC Energy Solutions
Performance |
| Timeline |
| Saga Pure ASA |
| MPC Energy Solutions |
Saga Pure and MPC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saga Pure and MPC Energy
The main advantage of trading using opposite Saga Pure and MPC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saga Pure position performs unexpectedly, MPC 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 MPC Energy will offset losses from the drop in MPC Energy's long position.| Saga Pure vs. Aker Carbon Capture | Saga Pure vs. Aker Horizons AS | Saga Pure vs. Elkem ASA | Saga Pure vs. Kongsberg Automotive Holding |
| MPC Energy vs. Morrow Bank ASA | MPC Energy vs. SoftwareOne Holding | MPC Energy vs. Thor Medical ASA | MPC Energy vs. Sogn Sparebank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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