Correlation Between Gran Tierra and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Gran Tierra and Kolibri Global 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 Gran Tierra and Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gran Tierra Energy and Kolibri Global Energy, you can compare the effects of market volatilities on Gran Tierra and Kolibri Global 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 Gran Tierra with a short position of Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gran Tierra and Kolibri Global.
Diversification Opportunities for Gran Tierra and Kolibri Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gran and Kolibri is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gran Tierra Energy and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy and Gran Tierra 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 Gran Tierra Energy are associated (or correlated) with Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Gran Tierra i.e., Gran Tierra and Kolibri Global go up and down completely randomly.
Pair Corralation between Gran Tierra and Kolibri Global
Considering the 90-day investment horizon Gran Tierra is expected to generate 3.83 times less return on investment than Kolibri Global. In addition to that, Gran Tierra is 1.63 times more volatile than Kolibri Global Energy. It trades about 0.15 of its total potential returns per unit of risk. Kolibri Global Energy is currently generating about 0.91 per unit of volatility. If you would invest 344.00 in Kolibri Global Energy on September 14, 2024 and sell it today you would earn a total of 160.00 from holding Kolibri Global Energy or generate 46.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gran Tierra Energy vs. Kolibri Global Energy
Performance |
| Timeline |
| Gran Tierra Energy |
| Kolibri Global Energy |
Gran Tierra and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gran Tierra and Kolibri Global
The main advantage of trading using opposite Gran Tierra and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gran Tierra position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Gran Tierra vs. Permian Resources | Gran Tierra vs. PEDEVCO Corp | Gran Tierra vs. Vermilion Energy | Gran Tierra vs. Ovintiv |
| Kolibri Global vs. Evolution Petroleum | Kolibri Global vs. Ring Energy | Kolibri Global vs. Gran Tierra Energy | Kolibri Global vs. Permian Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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