Correlation Between Sable Offshore and Coursera

Can any of the company-specific risk be diversified away by investing in both Sable Offshore and Coursera 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 Coursera 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 Coursera, you can compare the effects of market volatilities on Sable Offshore and Coursera 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 Coursera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Coursera.

Diversification Opportunities for Sable Offshore and Coursera

0.04

Correlation Coefficient

Sable Offshore  Coursera

Significant diversification

The 3 months correlation between Sable and Coursera is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of Sable Offshore i.e., Sable Offshore and Coursera go up and down completely randomly.

Pair Corralation between Sable Offshore and Coursera

Considering the 90-day investment horizon Sable Offshore Corp is expected to under-perform the Coursera. In addition to that, Sable Offshore is 1.61 times more volatile than Coursera. It trades about -0.04 of its total potential returns per unit of risk. Coursera is currently generating about 0.03 per unit of volatility. If you would invest  798.00  in Coursera on September 17, 2024 and sell it today you would earn a total of  30.00  from holding Coursera or generate 3.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sable Offshore Corp  vs.  Coursera

Sable Offshore Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sable Offshore Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Coursera

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coursera are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Coursera may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Sable Offshore and Coursera

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

The idea behind Sable Offshore Corp and Coursera 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.

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.