Correlation Between Gibson Energy and Mullen
Can any of the company-specific risk be diversified away by investing in both Gibson Energy and Mullen 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 Gibson Energy and Mullen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gibson Energy and Mullen Group, you can compare the effects of market volatilities on Gibson Energy and Mullen 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 Gibson Energy with a short position of Mullen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gibson Energy and Mullen.
Diversification Opportunities for Gibson Energy and Mullen
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gibson and Mullen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gibson Energy and Mullen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Group and Gibson Energy 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 Gibson Energy are associated (or correlated) with Mullen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Group has no effect on the direction of Gibson Energy i.e., Gibson Energy and Mullen go up and down completely randomly.
Pair Corralation between Gibson Energy and Mullen
Assuming the 90 days trading horizon Gibson Energy is expected to under-perform the Mullen. But the stock apears to be less risky and, when comparing its historical volatility, Gibson Energy is 1.03 times less risky than Mullen. The stock trades about -0.17 of its potential returns per unit of risk. The Mullen Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,433 in Mullen Group on November 9, 2024 and sell it today you would earn a total of 8.00 from holding Mullen Group or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gibson Energy vs. Mullen Group
Performance |
| Timeline |
| Gibson Energy |
| Mullen Group |
Gibson Energy and Mullen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gibson Energy and Mullen
The main advantage of trading using opposite Gibson Energy and Mullen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gibson Energy position performs unexpectedly, Mullen 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 Mullen will offset losses from the drop in Mullen's long position.| Gibson Energy vs. Keyera Corp | Gibson Energy vs. Parkland Fuel | Gibson Energy vs. Superior Plus Corp | Gibson Energy vs. AltaGas |
| Mullen vs. Pason Systems | Mullen vs. Westshore Terminals Investment | Mullen vs. Superior Plus Corp | Mullen vs. Gibson Energy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |