Correlation Between Gulfport Energy and PHX Minerals
Can any of the company-specific risk be diversified away by investing in both Gulfport Energy and PHX Minerals 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 Gulfport Energy and PHX Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gulfport Energy Operating and PHX Minerals, you can compare the effects of market volatilities on Gulfport Energy and PHX Minerals 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 Gulfport Energy with a short position of PHX Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gulfport Energy and PHX Minerals.
Diversification Opportunities for Gulfport Energy and PHX Minerals
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gulfport and PHX is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gulfport Energy Operating and PHX Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHX Minerals and Gulfport 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 Gulfport Energy Operating are associated (or correlated) with PHX Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHX Minerals has no effect on the direction of Gulfport Energy i.e., Gulfport Energy and PHX Minerals go up and down completely randomly.
Pair Corralation between Gulfport Energy and PHX Minerals
Given the investment horizon of 90 days Gulfport Energy Operating is expected to under-perform the PHX Minerals. In addition to that, Gulfport Energy is 1.27 times more volatile than PHX Minerals. It trades about -0.07 of its total potential returns per unit of risk. PHX Minerals is currently generating about 0.03 per unit of volatility. If you would invest 391.00 in PHX Minerals on November 9, 2024 and sell it today you would earn a total of 3.00 from holding PHX Minerals or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gulfport Energy Operating vs. PHX Minerals
Performance |
| Timeline |
| Gulfport Energy Operating |
| PHX Minerals |
Gulfport Energy and PHX Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gulfport Energy and PHX Minerals
The main advantage of trading using opposite Gulfport Energy and PHX Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gulfport Energy position performs unexpectedly, PHX Minerals 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 PHX Minerals will offset losses from the drop in PHX Minerals' long position.| Gulfport Energy vs. Epsilon Energy | Gulfport Energy vs. Granite Ridge Resources | Gulfport Energy vs. North European Oil | Gulfport Energy vs. CNX Resources Corp |
| PHX Minerals vs. Gran Tierra Energy | PHX Minerals vs. Permian Resources | PHX Minerals vs. PermRock Royalty Trust | PHX Minerals vs. MV Oil Trust |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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