Correlation Between Black Stone and Gulfport Energy
Can any of the company-specific risk be diversified away by investing in both Black Stone and Gulfport 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 Black Stone and Gulfport Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Stone Minerals and Gulfport Energy Operating, you can compare the effects of market volatilities on Black Stone and Gulfport 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 Black Stone with a short position of Gulfport Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Stone and Gulfport Energy.
Diversification Opportunities for Black Stone and Gulfport Energy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Black and Gulfport is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Black Stone Minerals and Gulfport Energy Operating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulfport Energy Operating and Black Stone 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 Black Stone Minerals are associated (or correlated) with Gulfport Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulfport Energy Operating has no effect on the direction of Black Stone i.e., Black Stone and Gulfport Energy go up and down completely randomly.
Pair Corralation between Black Stone and Gulfport Energy
Considering the 90-day investment horizon Black Stone Minerals is expected to under-perform the Gulfport Energy. But the stock apears to be less risky and, when comparing its historical volatility, Black Stone Minerals is 1.62 times less risky than Gulfport Energy. The stock trades about -0.11 of its potential returns per unit of risk. The Gulfport Energy Operating is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 16,405 in Gulfport Energy Operating on September 12, 2024 and sell it today you would earn a total of 1,520 from holding Gulfport Energy Operating or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Stone Minerals vs. Gulfport Energy Operating
Performance |
| Timeline |
| Black Stone Minerals |
| Gulfport Energy Operating |
Black Stone and Gulfport Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Stone and Gulfport Energy
The main advantage of trading using opposite Black Stone and Gulfport Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Stone position performs unexpectedly, Gulfport 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 Gulfport Energy will offset losses from the drop in Gulfport Energy's long position.| Black Stone vs. Dorchester Minerals LP | Black Stone vs. Sitio Royalties Corp | Black Stone vs. MV Oil Trust | Black Stone vs. VOC Energy Trust |
| Gulfport Energy vs. Epsilon Energy | Gulfport Energy vs. Granite Ridge Resources | Gulfport Energy vs. North European Oil | Gulfport Energy vs. CNX Resources 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |