Correlation Between PHX Minerals and Gulfport Energy
Can any of the company-specific risk be diversified away by investing in both PHX Minerals and Gulfport 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 PHX Minerals and Gulfport Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHX Minerals and Gulfport Energy Operating, you can compare the effects of market volatilities on PHX Minerals and Gulfport 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 PHX Minerals with a short position of Gulfport Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHX Minerals and Gulfport Energy.
Diversification Opportunities for PHX Minerals and Gulfport Energy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PHX and Gulfport is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding PHX Minerals and Gulfport Energy Operating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulfport Energy Operating and PHX Minerals 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 PHX Minerals are associated (or correlated) with Gulfport Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulfport Energy Operating has no effect on the direction of PHX Minerals i.e., PHX Minerals and Gulfport Energy go up and down completely randomly.
Pair Corralation between PHX Minerals and Gulfport Energy
Considering the 90-day investment horizon PHX Minerals is expected to generate 0.79 times more return on investment than Gulfport Energy. However, PHX Minerals is 1.27 times less risky than Gulfport Energy. It trades about 0.03 of its potential returns per unit of risk. Gulfport Energy Operating is currently generating about -0.07 per unit of risk. If you would invest 391.00 in PHX Minerals on November 9, 2024 and sell it today you would earn a total of 3.00 from holding PHX Minerals or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHX Minerals vs. Gulfport Energy Operating
Performance |
| Timeline |
| PHX Minerals |
| Gulfport Energy Operating |
PHX Minerals and Gulfport Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHX Minerals and Gulfport Energy
The main advantage of trading using opposite PHX Minerals and Gulfport Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHX Minerals position performs unexpectedly, Gulfport 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 Gulfport Energy will offset losses from the drop in Gulfport Energy's long position.| PHX Minerals vs. Gran Tierra Energy | PHX Minerals vs. Permian Resources | PHX Minerals vs. PermRock Royalty Trust | PHX Minerals vs. MV Oil Trust |
| Gulfport Energy vs. Epsilon Energy | Gulfport Energy vs. Granite Ridge Resources | Gulfport Energy vs. North European Oil | Gulfport Energy vs. CNX Resources Corp |
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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