Correlation Between Saturn Oil and Total Energy

Can any of the company-specific risk be diversified away by investing in both Saturn Oil and Total 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 Saturn Oil and Total Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Saturn Oil Gas and Total Energy Services, you can compare the effects of market volatilities on Saturn Oil and Total 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 Saturn Oil with a short position of Total Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturn Oil and Total Energy.

Diversification Opportunities for Saturn Oil and Total Energy

0.29

Correlation Coefficient

Saturn Oil  Total Energy

Modest diversification

The 3 months correlation between Saturn and Total is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Saturn Oil Gas and Total Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Energy Services and Saturn Oil 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 Saturn Oil Gas are associated (or correlated) with Total Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Energy Services has no effect on the direction of Saturn Oil i.e., Saturn Oil and Total Energy go up and down completely randomly.

Pair Corralation between Saturn Oil and Total Energy

Assuming the 90 days trading horizon Saturn Oil is expected to generate 1.01 times less return on investment than Total Energy. In addition to that, Saturn Oil is 1.07 times more volatile than Total Energy Services. It trades about 0.09 of its total potential returns per unit of risk. Total Energy Services is currently generating about 0.1 per unit of volatility. If you would invest  1,314  in Total Energy Services on September 8, 2025 and sell it today you would earn a total of  168.00  from holding Total Energy Services or generate 12.79% return on investment over 90 days.

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

Saturn Oil Gas  vs.  Total Energy Services

Saturn Oil Gas

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Saturn Oil Gas are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Saturn Oil displayed solid returns over the last few months and may actually be approaching a breakup point.

Total Energy Services

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Total Energy Services are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Total Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Saturn Oil and Total Energy

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

The idea behind Saturn Oil Gas and Total Energy Services 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.

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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.