Correlation Between Gibson Energy and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Gibson Energy and Superior Plus 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 Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gibson Energy and Superior Plus Corp, you can compare the effects of market volatilities on Gibson Energy and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gibson Energy and Superior Plus.
Diversification Opportunities for Gibson Energy and Superior Plus
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gibson and Superior is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gibson Energy and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Gibson Energy i.e., Gibson Energy and Superior Plus go up and down completely randomly.
Pair Corralation between Gibson Energy and Superior Plus
Assuming the 90 days trading horizon Gibson Energy is expected to generate 0.63 times more return on investment than Superior Plus. However, Gibson Energy is 1.58 times less risky than Superior Plus. It trades about 0.03 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.03 per unit of risk. If you would invest 2,035 in Gibson Energy on August 24, 2024 and sell it today you would earn a total of 359.00 from holding Gibson Energy or generate 17.64% 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. Superior Plus Corp
Performance |
| Timeline |
| Gibson Energy |
| Superior Plus Corp |
Gibson Energy and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gibson Energy and Superior Plus
The main advantage of trading using opposite Gibson Energy and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gibson Energy position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Gibson Energy vs. Keyera Corp | Gibson Energy vs. Parkland Fuel | Gibson Energy vs. Superior Plus Corp | Gibson Energy vs. AltaGas |
| Superior Plus vs. Gibson Energy | Superior Plus vs. Parkland Fuel | Superior Plus vs. Mullen Group | Superior Plus vs. Keyera 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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