Correlation Between Greenfire Resources and Gran Tierra
Can any of the company-specific risk be diversified away by investing in both Greenfire Resources 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 Greenfire Resources and Gran Tierra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenfire Resources and Gran Tierra Energy, you can compare the effects of market volatilities on Greenfire Resources 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 Greenfire Resources with a short position of Gran Tierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenfire Resources and Gran Tierra.
Diversification Opportunities for Greenfire Resources and Gran Tierra
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenfire and Gran is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Greenfire Resources 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 Greenfire Resources 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 Greenfire Resources 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 Greenfire Resources i.e., Greenfire Resources and Gran Tierra go up and down completely randomly.
Pair Corralation between Greenfire Resources and Gran Tierra
Considering the 90-day investment horizon Greenfire Resources is expected to under-perform the Gran Tierra. But the stock apears to be less risky and, when comparing its historical volatility, Greenfire Resources is 1.15 times less risky than Gran Tierra. The stock trades about -0.01 of its potential returns per unit of risk. The Gran Tierra Energy is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 957.00 in Gran Tierra Energy on September 14, 2024 and sell it today you would lose (296.00) from holding Gran Tierra Energy or give up 30.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Greenfire Resources vs. Gran Tierra Energy
Performance |
| Timeline |
| Greenfire Resources |
| Gran Tierra Energy |
Greenfire Resources and Gran Tierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenfire Resources and Gran Tierra
The main advantage of trading using opposite Greenfire Resources and Gran Tierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenfire Resources 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.| Greenfire Resources vs. Evolution Petroleum | Greenfire Resources vs. Ring Energy | Greenfire Resources vs. Gran Tierra Energy | Greenfire Resources vs. Permian 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |