Correlation Between CHK Old and Gran Tierra
Can any of the company-specific risk be diversified away by investing in both CHK Old and Gran Tierra 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 CHK Old and Gran Tierra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHK Old and Gran Tierra Energy, you can compare the effects of market volatilities on CHK Old and Gran Tierra 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 CHK Old with a short position of Gran Tierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHK Old and Gran Tierra.
Diversification Opportunities for CHK Old and Gran Tierra
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CHK and Gran is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CHK Old and Gran Tierra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gran Tierra Energy and CHK Old 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 CHK Old are associated (or correlated) with Gran Tierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gran Tierra Energy has no effect on the direction of CHK Old i.e., CHK Old and Gran Tierra go up and down completely randomly.
Pair Corralation between CHK Old and Gran Tierra
If you would invest 665.00 in Gran Tierra Energy on October 23, 2024 and sell it today you would earn a total of 8.00 from holding Gran Tierra Energy or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
CHK Old vs. Gran Tierra Energy
Performance |
| Timeline |
| CHK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gran Tierra Energy |
CHK Old and Gran Tierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHK Old and Gran Tierra
The main advantage of trading using opposite CHK Old and Gran Tierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHK Old position performs unexpectedly, Gran Tierra 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 Gran Tierra will offset losses from the drop in Gran Tierra's long position.| CHK Old vs. Range Resources Corp | CHK Old vs. Antero Resources Corp | CHK Old vs. EQT Corporation | CHK Old vs. Comstock Resources |
| Gran Tierra vs. Permian Resources | Gran Tierra vs. PEDEVCO Corp | Gran Tierra vs. Vermilion Energy | Gran Tierra vs. Ovintiv |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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