Correlation Between Vermilion Energy and Gordon Creek
Can any of the company-specific risk be diversified away by investing in both Vermilion Energy and Gordon Creek 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 Vermilion Energy and Gordon Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vermilion Energy and Gordon Creek Energy, you can compare the effects of market volatilities on Vermilion Energy and Gordon Creek 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 Vermilion Energy with a short position of Gordon Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vermilion Energy and Gordon Creek.
Diversification Opportunities for Vermilion Energy and Gordon Creek
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vermilion and Gordon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vermilion Energy and Gordon Creek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gordon Creek Energy and Vermilion 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 Vermilion Energy are associated (or correlated) with Gordon Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gordon Creek Energy has no effect on the direction of Vermilion Energy i.e., Vermilion Energy and Gordon Creek go up and down completely randomly.
Pair Corralation between Vermilion Energy and Gordon Creek
If you would invest 0.01 in Gordon Creek Energy on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Gordon Creek Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.72% |
| Values | Daily Returns |
Vermilion Energy vs. Gordon Creek Energy
Performance |
| Timeline |
| Vermilion Energy |
| Gordon Creek Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vermilion Energy and Gordon Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vermilion Energy and Gordon Creek
The main advantage of trading using opposite Vermilion Energy and Gordon Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vermilion Energy position performs unexpectedly, Gordon Creek 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 Gordon Creek will offset losses from the drop in Gordon Creek's long position.| Vermilion Energy vs. Baytex Energy Corp | Vermilion Energy vs. Obsidian Energy | Vermilion Energy vs. Canadian Natural Resources | Vermilion Energy vs. Ovintiv |
| Gordon Creek vs. Baytex Energy Corp | Gordon Creek vs. Vermilion Energy | Gordon Creek vs. ConocoPhillips | Gordon Creek vs. Ovintiv |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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