Correlation Between Huntsman Exploration and Granite Creek
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and Granite Creek 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 Huntsman Exploration and Granite Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman Exploration and Granite Creek Copper, you can compare the effects of market volatilities on Huntsman Exploration and Granite Creek 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 Huntsman Exploration with a short position of Granite Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and Granite Creek.
Diversification Opportunities for Huntsman Exploration and Granite Creek
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huntsman and Granite is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and Granite Creek Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Creek Copper and Huntsman Exploration 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 Huntsman Exploration are associated (or correlated) with Granite Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Creek Copper has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and Granite Creek go up and down completely randomly.
Pair Corralation between Huntsman Exploration and Granite Creek
Assuming the 90 days horizon Huntsman Exploration is expected to under-perform the Granite Creek. In addition to that, Huntsman Exploration is 2.64 times more volatile than Granite Creek Copper. It trades about -0.21 of its total potential returns per unit of risk. Granite Creek Copper is currently generating about -0.22 per unit of volatility. If you would invest 1.64 in Granite Creek Copper on August 29, 2024 and sell it today you would lose (0.38) from holding Granite Creek Copper or give up 23.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntsman Exploration vs. Granite Creek Copper
Performance |
| Timeline |
| Huntsman Exploration |
| Granite Creek Copper |
Huntsman Exploration and Granite Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and Granite Creek
The main advantage of trading using opposite Huntsman Exploration and Granite Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, Granite Creek 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 Granite Creek will offset losses from the drop in Granite Creek's long position.| Huntsman Exploration vs. Aurelia Metals Limited | Huntsman Exploration vs. Adriatic Metals PLC | Huntsman Exploration vs. American Helium | Huntsman Exploration vs. Progressive Planet Solutions |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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