Correlation Between Sage Potash and Athabasca Oil
Can any of the company-specific risk be diversified away by investing in both Sage Potash and Athabasca Oil 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 Sage Potash and Athabasca Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sage Potash Corp and Athabasca Oil Corp, you can compare the effects of market volatilities on Sage Potash and Athabasca Oil 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 Sage Potash with a short position of Athabasca Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sage Potash and Athabasca Oil.
Diversification Opportunities for Sage Potash and Athabasca Oil
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sage and Athabasca is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sage Potash Corp and Athabasca Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athabasca Oil Corp and Sage Potash 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 Sage Potash Corp are associated (or correlated) with Athabasca Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athabasca Oil Corp has no effect on the direction of Sage Potash i.e., Sage Potash and Athabasca Oil go up and down completely randomly.
Pair Corralation between Sage Potash and Athabasca Oil
Assuming the 90 days trading horizon Sage Potash Corp is expected to under-perform the Athabasca Oil. In addition to that, Sage Potash is 2.97 times more volatile than Athabasca Oil Corp. It trades about -0.19 of its total potential returns per unit of risk. Athabasca Oil Corp is currently generating about 0.15 per unit of volatility. If you would invest 720.00 in Athabasca Oil Corp on September 11, 2025 and sell it today you would earn a total of 42.00 from holding Athabasca Oil Corp or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sage Potash Corp vs. Athabasca Oil Corp
Performance |
| Timeline |
| Sage Potash Corp |
| Athabasca Oil Corp |
Sage Potash and Athabasca Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sage Potash and Athabasca Oil
The main advantage of trading using opposite Sage Potash and Athabasca Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sage Potash position performs unexpectedly, Athabasca Oil 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 Athabasca Oil will offset losses from the drop in Athabasca Oil's long position.| Sage Potash vs. Champion Iron | Sage Potash vs. Queens Road Capital | Sage Potash vs. Information Services | Sage Potash vs. MTY Food Group |
| Athabasca Oil vs. NuVista Energy | Athabasca Oil vs. Paramount Resources | Athabasca Oil vs. Tamarack Valley Energy | Athabasca Oil vs. Peyto ExplorationDevelopment Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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