Correlation Between GULF ENERGY and Super Energy
Can any of the company-specific risk be diversified away by investing in both GULF ENERGY and Super Energy 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 GULF ENERGY and Super Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GULF ENERGY DEVELOPMENT NVDR and Super Energy, you can compare the effects of market volatilities on GULF ENERGY and Super Energy 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 GULF ENERGY with a short position of Super Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GULF ENERGY and Super Energy.
Diversification Opportunities for GULF ENERGY and Super Energy
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GULF and Super is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GULF ENERGY DEVELOPMENT NVDR and Super Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Energy and GULF 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 GULF ENERGY DEVELOPMENT NVDR are associated (or correlated) with Super Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Energy has no effect on the direction of GULF ENERGY i.e., GULF ENERGY and Super Energy go up and down completely randomly.
Pair Corralation between GULF ENERGY and Super Energy
Assuming the 90 days trading horizon GULF ENERGY is expected to generate 36.64 times less return on investment than Super Energy. But when comparing it to its historical volatility, GULF ENERGY DEVELOPMENT NVDR is 28.0 times less risky than Super Energy. It trades about 0.03 of its potential returns per unit of risk. Super Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Super Energy on September 4, 2024 and sell it today you would lose (39.00) from holding Super Energy or give up 59.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.04% |
| Values | Daily Returns |
GULF ENERGY DEVELOPMENT NVDR vs. Super Energy
Performance |
| Timeline |
| GULF ENERGY DEVELOPMENT |
| Super Energy |
GULF ENERGY and Super Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GULF ENERGY and Super Energy
The main advantage of trading using opposite GULF ENERGY and Super Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GULF ENERGY position performs unexpectedly, Super Energy 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 Super Energy will offset losses from the drop in Super Energy's long position.| GULF ENERGY vs. Thai Oil Public | GULF ENERGY vs. Electricity Generating Public | GULF ENERGY vs. Ratch Group Public |
| Super Energy vs. Bangchak Public | Super Energy vs. Gulf Energy Development | Super Energy vs. Bangkok Expressway and | Super Energy vs. BGrimm Power Public |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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