Correlation Between Golden Energy and KARX
Can any of the company-specific risk be diversified away by investing in both Golden Energy and KARX 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 Golden Energy and KARX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Energy Offshore and KARX, you can compare the effects of market volatilities on Golden Energy and KARX 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 Golden Energy with a short position of KARX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Energy and KARX.
Diversification Opportunities for Golden Energy and KARX
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and KARX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Golden Energy Offshore and KARX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KARX and Golden 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 Golden Energy Offshore are associated (or correlated) with KARX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KARX has no effect on the direction of Golden Energy i.e., Golden Energy and KARX go up and down completely randomly.
Pair Corralation between Golden Energy and KARX
Assuming the 90 days horizon Golden Energy Offshore is expected to under-perform the KARX. But the otc stock apears to be less risky and, when comparing its historical volatility, Golden Energy Offshore is 5.34 times less risky than KARX. The otc stock trades about -0.02 of its potential returns per unit of risk. The KARX is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 70.00 in KARX on August 4, 2025 and sell it today you would lose (5.00) from holding KARX or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Golden Energy Offshore vs. KARX
Performance |
| Timeline |
| Golden Energy Offshore |
| KARX |
Golden Energy and KARX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Energy and KARX
The main advantage of trading using opposite Golden Energy and KARX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Energy position performs unexpectedly, KARX 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 KARX will offset losses from the drop in KARX's long position.| Golden Energy vs. Harbor Diversified | Golden Energy vs. KARX | Golden Energy vs. Beroni Group Limited | Golden Energy vs. Toho Titanium Co |
| KARX vs. Harbor Diversified | KARX vs. Golden Energy Offshore | KARX vs. Manolete Partners Plc | KARX vs. Orbital Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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