Correlation Between Gulf Energy and Triple I
Can any of the company-specific risk be diversified away by investing in both Gulf Energy and Triple I 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 Triple I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gulf Energy Development and Triple i Logistics, you can compare the effects of market volatilities on Gulf Energy and Triple I 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 Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gulf Energy and Triple I.
Diversification Opportunities for Gulf Energy and Triple I
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gulf and Triple is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gulf Energy Development and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics 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 are associated (or correlated) with Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of Gulf Energy i.e., Gulf Energy and Triple I go up and down completely randomly.
Pair Corralation between Gulf Energy and Triple I
Assuming the 90 days trading horizon Gulf Energy is expected to generate 39.48 times less return on investment than Triple I. But when comparing it to its historical volatility, Gulf Energy Development is 29.71 times less risky than Triple I. It trades about 0.03 of its potential returns per unit of risk. Triple i Logistics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,197 in Triple i Logistics on September 2, 2024 and sell it today you would lose (627.00) from holding Triple i Logistics or give up 52.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gulf Energy Development vs. Triple i Logistics
Performance |
| Timeline |
| Gulf Energy Development |
| Triple i Logistics |
Gulf Energy and Triple I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gulf Energy and Triple I
The main advantage of trading using opposite Gulf Energy and Triple I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gulf Energy position performs unexpectedly, Triple I 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 Triple I will offset losses from the drop in Triple I's long position.| Gulf Energy vs. Energy Absolute Public | Gulf Energy vs. BGrimm Power Public | Gulf Energy vs. Global Power Synergy | Gulf Energy vs. CP ALL Public |
| Triple I vs. Gulf Energy Development | Triple I vs. Energy Absolute Public | Triple I vs. WHA Public | Triple I vs. Bangkok Expressway and |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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