Correlation Between Gitennes Exploration and American Creek

Can any of the company-specific risk be diversified away by investing in both Gitennes Exploration and American 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 Gitennes Exploration and American Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gitennes Exploration and American Creek Resources, you can compare the effects of market volatilities on Gitennes Exploration and American 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 Gitennes Exploration with a short position of American Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gitennes Exploration and American Creek.

Diversification Opportunities for Gitennes Exploration and American Creek

-0.15

Correlation Coefficient

Gitennes Exploration  American Creek

Good diversification

The 3 months correlation between Gitennes and American is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gitennes Exploration and American Creek Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Creek Resources and Gitennes Exploration 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 Gitennes Exploration are associated (or correlated) with American Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Creek Resources has no effect on the direction of Gitennes Exploration i.e., Gitennes Exploration and American Creek go up and down completely randomly.

Pair Corralation between Gitennes Exploration and American Creek

If you would invest  12.00  in American Creek Resources on March 31, 2024 and sell it today you would earn a total of  5.00  from holding American Creek Resources or generate 41.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Gitennes Exploration  vs.  American Creek Resources

Gitennes Exploration

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gitennes Exploration are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gitennes Exploration showed solid returns over the last few months and may actually be approaching a breakup point.

American Creek Resources

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in American Creek Resources are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, American Creek showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gitennes Exploration and American Creek

The main advantage of trading using opposite Gitennes Exploration and American Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gitennes Exploration position performs unexpectedly, American 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 American Creek will offset losses from the drop in American Creek's long position.

The idea behind Gitennes Exploration and American Creek Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.