Correlation Between Vivakor and Gulfport Energy

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

By analyzing existing cross correlation between Vivakor and Gulfport Energy Operating, you can compare the effects of market volatilities on Vivakor and Gulfport Energy 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 Vivakor with a short position of Gulfport Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivakor and Gulfport Energy.

Diversification Opportunities for Vivakor and Gulfport Energy

0.08

Correlation Coefficient

Vivakor  Gulfport Energy

Significant diversification

The 3 months correlation between Vivakor and Gulfport is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Vivakor and Gulfport Energy Operating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulfport Energy Operating and Vivakor 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 Vivakor are associated (or correlated) with Gulfport Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulfport Energy Operating has no effect on the direction of Vivakor i.e., Vivakor and Gulfport Energy go up and down completely randomly.

Pair Corralation between Vivakor and Gulfport Energy

Given the investment horizon of 90 days Vivakor is expected to generate 7.61 times more return on investment than Gulfport Energy. However, Vivakor is 7.61 times more volatile than Gulfport Energy Operating. It trades about 0.23 of its potential returns per unit of risk. Gulfport Energy Operating is currently generating about -0.02 per unit of risk. If you would invest  78.00  in Vivakor on February 1, 2024 and sell it today you would earn a total of  37.00  from holding Vivakor or generate 47.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vivakor  vs.  Gulfport Energy Operating

Vivakor

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vivakor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Vivakor disclosed solid returns over the last few months and may actually be approaching a breakup point.

Gulfport Energy Operating

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gulfport Energy Operating are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Gulfport Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vivakor and Gulfport Energy

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

The idea behind Vivakor and Gulfport Energy Operating 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.