Correlation Between GULF ENERGY and Kerry Express

Can any of the company-specific risk be diversified away by investing in both GULF ENERGY and Kerry Express 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 GULF ENERGY and Kerry Express into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GULF ENERGY DEVELOPMENT NVDR and Kerry Express Public, you can compare the effects of market volatilities on GULF ENERGY and Kerry Express 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 GULF ENERGY with a short position of Kerry Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of GULF ENERGY and Kerry Express.

Diversification Opportunities for GULF ENERGY and Kerry Express

-0.5

Correlation Coefficient

GULF ENERGY  Kerry Express

Very good diversification

The 3 months correlation between GULF and Kerry is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GULF ENERGY DEVELOPMENT NVDR and Kerry Express Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Express Public and GULF 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 GULF ENERGY DEVELOPMENT NVDR are associated (or correlated) with Kerry Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Express Public has no effect on the direction of GULF ENERGY i.e., GULF ENERGY and Kerry Express go up and down completely randomly.

Pair Corralation between GULF ENERGY and Kerry Express

Assuming the 90 days trading horizon GULF ENERGY DEVELOPMENT NVDR is expected to generate 0.03 times more return on investment than Kerry Express. However, GULF ENERGY DEVELOPMENT NVDR is 34.18 times less risky than Kerry Express. It trades about 0.13 of its potential returns per unit of risk. Kerry Express Public is currently generating about -0.08 per unit of risk. If you would invest  5,949  in GULF ENERGY DEVELOPMENT NVDR on December 24, 2024 and sell it today you would earn a total of  101.00  from holding GULF ENERGY DEVELOPMENT NVDR or generate 1.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

GULF ENERGY DEVELOPMENT NVDR  vs.  Kerry Express Public

GULF ENERGY DEVELOPMENT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GULF ENERGY DEVELOPMENT NVDR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, GULF ENERGY is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kerry Express Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kerry Express Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with GULF ENERGY and Kerry Express

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

The idea behind GULF ENERGY DEVELOPMENT NVDR and Kerry Express Public 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.