Correlation Between Parafin Corp and GulfSlope Energy
Can any of the company-specific risk be diversified away by investing in both Parafin Corp and GulfSlope 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 Parafin Corp and GulfSlope Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parafin Corp and GulfSlope Energy, you can compare the effects of market volatilities on Parafin Corp and GulfSlope 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 Parafin Corp with a short position of GulfSlope Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parafin Corp and GulfSlope Energy.
Diversification Opportunities for Parafin Corp and GulfSlope Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Parafin and GulfSlope is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Parafin Corp and GulfSlope Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GulfSlope Energy and Parafin Corp 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 Parafin Corp are associated (or correlated) with GulfSlope Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GulfSlope Energy has no effect on the direction of Parafin Corp i.e., Parafin Corp and GulfSlope Energy go up and down completely randomly.
Pair Corralation between Parafin Corp and GulfSlope Energy
If you would invest 0.01 in GulfSlope Energy on September 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Parafin Corp vs. GulfSlope Energy
Performance |
| Timeline |
| Parafin Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GulfSlope Energy |
Parafin Corp and GulfSlope Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parafin Corp and GulfSlope Energy
The main advantage of trading using opposite Parafin Corp and GulfSlope Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parafin Corp position performs unexpectedly, GulfSlope 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 GulfSlope Energy will offset losses from the drop in GulfSlope Energy's long position.| Parafin Corp vs. Imperial Res | Parafin Corp vs. Strat Petroleum | Parafin Corp vs. Century Petroleum Corp |
| GulfSlope Energy vs. PEDEVCO Corp | GulfSlope Energy vs. Ring Energy | GulfSlope Energy vs. Occidental Petroleum | GulfSlope Energy vs. Foothills Exploration |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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