Correlation Between South Bow and SandRidge Energy
Can any of the company-specific risk be diversified away by investing in both South Bow and SandRidge 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 South Bow and SandRidge Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Bow and SandRidge Energy, you can compare the effects of market volatilities on South Bow and SandRidge 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 South Bow with a short position of SandRidge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Bow and SandRidge Energy.
Diversification Opportunities for South Bow and SandRidge Energy
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between South and SandRidge is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding South Bow and SandRidge Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SandRidge Energy and South Bow 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 South Bow are associated (or correlated) with SandRidge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SandRidge Energy has no effect on the direction of South Bow i.e., South Bow and SandRidge Energy go up and down completely randomly.
Pair Corralation between South Bow and SandRidge Energy
Given the investment horizon of 90 days South Bow is expected to generate 5.99 times less return on investment than SandRidge Energy. But when comparing it to its historical volatility, South Bow is 1.72 times less risky than SandRidge Energy. It trades about 0.05 of its potential returns per unit of risk. SandRidge Energy is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,130 in SandRidge Energy on August 26, 2025 and sell it today you would earn a total of 292.00 from holding SandRidge Energy or generate 25.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
South Bow vs. SandRidge Energy
Performance |
| Timeline |
| South Bow |
| SandRidge Energy |
South Bow and SandRidge Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Bow and SandRidge Energy
The main advantage of trading using opposite South Bow and SandRidge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Bow position performs unexpectedly, SandRidge 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 SandRidge Energy will offset losses from the drop in SandRidge Energy's long position.| South Bow vs. Amkor Technology | South Bow vs. Marti Technologies | South Bow vs. Apollo Global Management | South Bow vs. Solstad Offshore ASA |
| SandRidge Energy vs. Urban Outfitters | SandRidge Energy vs. GCT Semiconductor Holding | SandRidge Energy vs. Apparel Manufacturing Associates | SandRidge Energy vs. Grounded People Apparel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |