Correlation Between Goodbye Kansas and ShaMaran Petroleum

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and ShaMaran Petroleum 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 Goodbye Kansas and ShaMaran Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodbye Kansas Group and ShaMaran Petroleum Corp, you can compare the effects of market volatilities on Goodbye Kansas and ShaMaran Petroleum 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 Goodbye Kansas with a short position of ShaMaran Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and ShaMaran Petroleum.

Diversification Opportunities for Goodbye Kansas and ShaMaran Petroleum

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between Goodbye and ShaMaran is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and ShaMaran Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShaMaran Petroleum Corp and Goodbye Kansas 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 Goodbye Kansas Group are associated (or correlated) with ShaMaran Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShaMaran Petroleum Corp has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and ShaMaran Petroleum go up and down completely randomly.

Pair Corralation between Goodbye Kansas and ShaMaran Petroleum

Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 5.94 times more return on investment than ShaMaran Petroleum. However, Goodbye Kansas is 5.94 times more volatile than ShaMaran Petroleum Corp. It trades about 0.08 of its potential returns per unit of risk. ShaMaran Petroleum Corp is currently generating about 0.08 per unit of risk. If you would invest  83.00  in Goodbye Kansas Group on September 28, 2024 and sell it today you would earn a total of  64.00  from holding Goodbye Kansas Group or generate 77.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Goodbye Kansas Group  vs.  ShaMaran Petroleum Corp

 Performance 
       Timeline  
Goodbye Kansas Group 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Goodbye Kansas Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking signals, Goodbye Kansas unveiled solid returns over the last few months and may actually be approaching a breakup point.
ShaMaran Petroleum Corp 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in ShaMaran Petroleum Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, ShaMaran Petroleum unveiled solid returns over the last few months and may actually be approaching a breakup point.

Goodbye Kansas and ShaMaran Petroleum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Goodbye Kansas and ShaMaran Petroleum

The main advantage of trading using opposite Goodbye Kansas and ShaMaran Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, ShaMaran Petroleum 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 ShaMaran Petroleum will offset losses from the drop in ShaMaran Petroleum's long position.
The idea behind Goodbye Kansas Group and ShaMaran Petroleum Corp 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.
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Transaction History
View history of all your transactions and understand their impact on performance
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios