Correlation Between Golden Energy and United Express
Can any of the company-specific risk be diversified away by investing in both Golden Energy and United 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 Golden Energy and United Express 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 United Express, you can compare the effects of market volatilities on Golden Energy and United 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 Golden Energy with a short position of United Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Energy and United Express.
Diversification Opportunities for Golden Energy and United Express
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and United is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Golden Energy Offshore and United Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Express 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 United Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Express has no effect on the direction of Golden Energy i.e., Golden Energy and United Express go up and down completely randomly.
Pair Corralation between Golden Energy and United Express
Assuming the 90 days horizon Golden Energy Offshore is expected to generate 0.33 times more return on investment than United Express. However, Golden Energy Offshore is 3.05 times less risky than United Express. It trades about -0.02 of its potential returns per unit of risk. United Express is currently generating about -0.05 per unit of risk. If you would invest 170.00 in Golden Energy Offshore on August 22, 2025 and sell it today you would lose (7.00) from holding Golden Energy Offshore or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Energy Offshore vs. United Express
Performance |
| Timeline |
| Golden Energy Offshore |
| United Express |
Golden Energy and United Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Energy and United Express
The main advantage of trading using opposite Golden Energy and United Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Energy position performs unexpectedly, United 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 United Express will offset losses from the drop in United Express' long position.| Golden Energy vs. Toho Titanium Co | Golden Energy vs. Suncorp Technologies Limited | Golden Energy vs. Genoil Inc | Golden Energy vs. Aquarius Engines |
| United Express vs. Cavitation Techs | United Express vs. Next10 Inc | United Express vs. FBR Limited | United Express vs. IBC Advanced Alloys |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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