Correlation Between Global Crossing and Golden Energy

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Can any of the company-specific risk be diversified away by investing in both Global Crossing and Golden 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 Global Crossing and Golden Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and Golden Energy Offshore, you can compare the effects of market volatilities on Global Crossing and Golden 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 Global Crossing with a short position of Golden Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and Golden Energy.

Diversification Opportunities for Global Crossing and Golden Energy

-0.49
  Correlation Coefficient

Very good diversification

The 3 months correlation between Global and Golden is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and Golden Energy Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Energy Offshore and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with Golden Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Energy Offshore has no effect on the direction of Global Crossing i.e., Global Crossing and Golden Energy go up and down completely randomly.

Pair Corralation between Global Crossing and Golden Energy

Assuming the 90 days horizon Global Crossing Airlines is expected to generate 3.62 times more return on investment than Golden Energy. However, Global Crossing is 3.62 times more volatile than Golden Energy Offshore. It trades about 0.11 of its potential returns per unit of risk. Golden Energy Offshore is currently generating about -0.22 per unit of risk. If you would invest  66.00  in Global Crossing Airlines on August 19, 2025 and sell it today you would earn a total of  6.00  from holding Global Crossing Airlines or generate 9.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Global Crossing Airlines  vs.  Golden Energy Offshore

 Performance 
       Timeline  
Global Crossing Airlines 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Global Crossing Airlines are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, Global Crossing reported solid returns over the last few months and may actually be approaching a breakup point.
Golden Energy Offshore 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Golden Energy Offshore has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Golden Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Global Crossing and Golden Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Global Crossing and Golden Energy

The main advantage of trading using opposite Global Crossing and Golden Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing position performs unexpectedly, Golden 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 Golden Energy will offset losses from the drop in Golden Energy's long position.
The idea behind Global Crossing Airlines and Golden Energy Offshore 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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