Correlation Between GulfSlope Energy and Tullow Oil
Can any of the company-specific risk be diversified away by investing in both GulfSlope Energy and Tullow Oil 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 GulfSlope Energy and Tullow Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GulfSlope Energy and Tullow Oil PLC, you can compare the effects of market volatilities on GulfSlope Energy and Tullow Oil 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 GulfSlope Energy with a short position of Tullow Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of GulfSlope Energy and Tullow Oil.
Diversification Opportunities for GulfSlope Energy and Tullow Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GulfSlope and Tullow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GulfSlope Energy and Tullow Oil PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tullow Oil PLC and GulfSlope 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 GulfSlope Energy are associated (or correlated) with Tullow Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tullow Oil PLC has no effect on the direction of GulfSlope Energy i.e., GulfSlope Energy and Tullow Oil go up and down completely randomly.
Pair Corralation between GulfSlope Energy and Tullow Oil
If you would invest 0.01 in GulfSlope Energy on December 1, 2024 and sell it today you would earn a total of 0.00 from holding GulfSlope Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GulfSlope Energy vs. Tullow Oil PLC
Performance |
| Timeline |
| GulfSlope Energy |
| Tullow Oil PLC |
GulfSlope Energy and Tullow Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GulfSlope Energy and Tullow Oil
The main advantage of trading using opposite GulfSlope Energy and Tullow Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GulfSlope Energy position performs unexpectedly, Tullow Oil 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 Tullow Oil will offset losses from the drop in Tullow Oil's long position.| GulfSlope Energy vs. PEDEVCO Corp | GulfSlope Energy vs. Ring Energy | GulfSlope Energy vs. Occidental Petroleum | GulfSlope Energy vs. Foothills Exploration |
| Tullow Oil vs. San Leon Energy | Tullow Oil vs. Dno ASA | Tullow Oil vs. PetroShale | Tullow Oil vs. Horizon Oil Limited |
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.
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