Correlation Between Granite Ridge and WT Offshore

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Granite Ridge and WT Offshore 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 WT Offshore 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 WT Offshore, you can compare the effects of market volatilities on Granite Ridge and WT Offshore 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 WT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Ridge and WT Offshore.

Diversification Opportunities for Granite Ridge and WT Offshore

GraniteWTIDiversified AwayGraniteWTIDiversified Away100%
0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Granite and WTI is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Granite Ridge Resources and WT Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT Offshore 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 WT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT Offshore has no effect on the direction of Granite Ridge i.e., Granite Ridge and WT Offshore go up and down completely randomly.

Pair Corralation between Granite Ridge and WT Offshore

Given the investment horizon of 90 days Granite Ridge Resources is expected to under-perform the WT Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Granite Ridge Resources is 1.6 times less risky than WT Offshore. The stock trades about -0.21 of its potential returns per unit of risk. The WT Offshore is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  182.00  in WT Offshore on November 21, 2024 and sell it today you would lose (7.00) from holding WT Offshore or give up 3.85% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Granite Ridge Resources  vs.  WT Offshore

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-100
JavaScript chart by amCharts 3.21.15GRNT WTI
       Timeline  
Granite Ridge Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Granite Ridge Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Granite Ridge is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5.65.866.26.46.66.87
WT Offshore 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days WT Offshore has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.41.51.61.71.81.92

Granite Ridge and WT Offshore Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.69-2.77-1.84-0.91-0.01530.891.812.733.654.57 0.040.050.060.07
JavaScript chart by amCharts 3.21.15GRNT WTI
       Returns  

Pair Trading with Granite Ridge and WT Offshore

The main advantage of trading using opposite Granite Ridge and WT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Ridge position performs unexpectedly, WT Offshore 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 WT Offshore will offset losses from the drop in WT Offshore's long position.
The idea behind Granite Ridge Resources and WT Offshore pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Global Correlations
Find global opportunities by holding instruments from different markets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios