Gran Free Cash Flow Yield vs Price To Sales Ratio Analysis
Pair Trading with Gran Tierra
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Gran Tierra position performs unexpectedly, the other equity 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 Gran Tierra will appreciate offsetting losses from the drop in the long position's value.Moving against Gran Stock
| 0.75 | ENB-PFC | Enbridge Pref 11 | PairCorr |
| 0.74 | DGS | Dividend Growth Split | PairCorr |
| 0.71 | DF | Dividend 15 Split | PairCorr |
| 0.65 | ENB-PFU | Enbridge Pref L | PairCorr |
| 0.65 | GSTM | Goldstorm Metals Corp | PairCorr |
The ability to find closely correlated positions to Gran Tierra could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gran Tierra when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Gran Tierra - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Gran Tierra Energy to buy it.
The correlation of Gran Tierra is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Gran Tierra moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gran Tierra Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Gran Tierra can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gran Tierra Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in producer price index. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.