Correlation Between Gibson Energy and Denison Mines
Can any of the company-specific risk be diversified away by investing in both Gibson Energy and Denison Mines 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 Gibson Energy and Denison Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gibson Energy and Denison Mines Corp, you can compare the effects of market volatilities on Gibson Energy and Denison Mines 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 Gibson Energy with a short position of Denison Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gibson Energy and Denison Mines.
Diversification Opportunities for Gibson Energy and Denison Mines
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gibson and Denison is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gibson Energy and Denison Mines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denison Mines Corp and Gibson 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 Gibson Energy are associated (or correlated) with Denison Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denison Mines Corp has no effect on the direction of Gibson Energy i.e., Gibson Energy and Denison Mines go up and down completely randomly.
Pair Corralation between Gibson Energy and Denison Mines
Assuming the 90 days trading horizon Gibson Energy is expected to under-perform the Denison Mines. But the stock apears to be less risky and, when comparing its historical volatility, Gibson Energy is 2.61 times less risky than Denison Mines. The stock trades about -0.4 of its potential returns per unit of risk. The Denison Mines Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Denison Mines Corp on July 22, 2025 and sell it today you would earn a total of 26.00 from holding Denison Mines Corp or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gibson Energy vs. Denison Mines Corp
Performance |
| Timeline |
| Gibson Energy |
| Denison Mines Corp |
Gibson Energy and Denison Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gibson Energy and Denison Mines
The main advantage of trading using opposite Gibson Energy and Denison Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gibson Energy position performs unexpectedly, Denison Mines 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 Denison Mines will offset losses from the drop in Denison Mines' long position.| Gibson Energy vs. Topaz Energy Corp | Gibson Energy vs. Peyto ExplorationDevelopment Corp | Gibson Energy vs. Tidewater Midstream and | Gibson Energy vs. Athabasca Oil Corp |
| Denison Mines vs. Gibson Energy | Denison Mines vs. Peyto ExplorationDevelopment Corp | Denison Mines vs. Topaz Energy Corp | Denison Mines vs. Athabasca Oil Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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