Correlation Between Granite Ridge and Coastal Caribbean
Can any of the company-specific risk be diversified away by investing in both Granite Ridge and Coastal Caribbean 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 Granite Ridge and Coastal Caribbean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Ridge Resources and Coastal Caribbean Oils, you can compare the effects of market volatilities on Granite Ridge and Coastal Caribbean 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 Granite Ridge with a short position of Coastal Caribbean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Ridge and Coastal Caribbean.
Diversification Opportunities for Granite Ridge and Coastal Caribbean
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Granite and Coastal is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Granite Ridge Resources and Coastal Caribbean Oils in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Caribbean Oils and Granite Ridge 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 Granite Ridge Resources are associated (or correlated) with Coastal Caribbean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Caribbean Oils has no effect on the direction of Granite Ridge i.e., Granite Ridge and Coastal Caribbean go up and down completely randomly.
Pair Corralation between Granite Ridge and Coastal Caribbean
If you would invest 596.00 in Granite Ridge Resources on August 31, 2024 and sell it today you would earn a total of 59.00 from holding Granite Ridge Resources or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Granite Ridge Resources vs. Coastal Caribbean Oils
Performance |
| Timeline |
| Granite Ridge Resources |
| Coastal Caribbean Oils |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Granite Ridge and Coastal Caribbean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Ridge and Coastal Caribbean
The main advantage of trading using opposite Granite Ridge and Coastal Caribbean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Ridge position performs unexpectedly, Coastal Caribbean 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 Coastal Caribbean will offset losses from the drop in Coastal Caribbean's long position.| Granite Ridge vs. Epsilon Energy | Granite Ridge vs. Gulfport Energy Operating | Granite Ridge vs. North European Oil | Granite Ridge vs. PHX Minerals |
| Coastal Caribbean vs. Strat Petroleum | Coastal Caribbean vs. Imperial Res | Coastal Caribbean vs. Century Petroleum 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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