Correlation Between ConocoPhillips and Gran Tierra
Can any of the company-specific risk be diversified away by investing in both ConocoPhillips 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 ConocoPhillips and Gran Tierra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConocoPhillips and Gran Tierra Energy, you can compare the effects of market volatilities on ConocoPhillips 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 ConocoPhillips with a short position of Gran Tierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConocoPhillips and Gran Tierra.
Diversification Opportunities for ConocoPhillips and Gran Tierra
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ConocoPhillips and Gran is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ConocoPhillips 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 ConocoPhillips 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 ConocoPhillips 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 ConocoPhillips i.e., ConocoPhillips and Gran Tierra go up and down completely randomly.
Pair Corralation between ConocoPhillips and Gran Tierra
Considering the 90-day investment horizon ConocoPhillips is expected to generate 0.35 times more return on investment than Gran Tierra. However, ConocoPhillips is 2.85 times less risky than Gran Tierra. It trades about -0.06 of its potential returns per unit of risk. Gran Tierra Energy is currently generating about -0.39 per unit of risk. If you would invest 10,162 in ConocoPhillips on November 9, 2024 and sell it today you would lose (168.00) from holding ConocoPhillips or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConocoPhillips vs. Gran Tierra Energy
Performance |
| Timeline |
| ConocoPhillips |
| Gran Tierra Energy |
ConocoPhillips and Gran Tierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConocoPhillips and Gran Tierra
The main advantage of trading using opposite ConocoPhillips and Gran Tierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConocoPhillips 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.| ConocoPhillips vs. Diamondback Energy | ConocoPhillips vs. APA Corporation | ConocoPhillips vs. Hess Corporation | ConocoPhillips vs. Coterra Energy |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |