Correlation Between Gran Tierra and Simply Good

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Gran Tierra and Simply Good 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 Gran Tierra and Simply Good into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gran Tierra Energy and The Simply Good, you can compare the effects of market volatilities on Gran Tierra and Simply Good 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 Gran Tierra with a short position of Simply Good. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gran Tierra and Simply Good.

Diversification Opportunities for Gran Tierra and Simply Good

  Correlation Coefficient

Very good diversification

The 3 months correlation between Gran Tierra and Simply is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gran Tierra Energy and The Simply Good in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simply Good and Gran Tierra 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 Gran Tierra Energy are associated (or correlated) with Simply Good. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simply Good has no effect on the direction of Gran Tierra i.e., Gran Tierra and Simply Good go up and down completely randomly.

Pair Corralation between Gran Tierra and Simply Good

Considering the 90-day investment horizon Gran Tierra Energy is expected to generate 2.02 times more return on investment than Simply Good. However, Gran Tierra is 2.02 times more volatile than The Simply Good. It trades about 0.05 of its potential returns per unit of risk. The Simply Good is currently generating about 0.01 per unit of risk. If you would invest  87.00  in Gran Tierra Energy on September 1, 2022 and sell it today you would earn a total of  32.00  from holding Gran Tierra Energy or generate 36.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
ValuesDaily Returns

Gran Tierra Energy  vs.  The Simply Good

 Performance (%) 
Gran Tierra Energy 
Gran Tierra Performance
0 of 100
Over the last 90 days Gran Tierra Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Gran Tierra is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Gran Tierra Price Channel

Simply Good 
Simply Performance
14 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in The Simply Good are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Simply Good revealed solid returns over the last few months and may actually be approaching a breakup point.

Simply Price Channel

Gran Tierra and Simply Good Volatility Contrast

   Predicted Return Density   

Pair Trading with Gran Tierra and Simply Good

The main advantage of trading using opposite Gran Tierra and Simply Good positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gran Tierra position performs unexpectedly, Simply Good 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 Simply Good will offset losses from the drop in Simply Good's long position.
Gran Tierra vs. ConocoPhillips
Gran Tierra vs. Pioneer Natural Resources
Gran Tierra vs. Occidental Petroleum Corp
The idea behind Gran Tierra Energy and The Simply Good 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.
Simply Good vs. General Mills
Simply Good vs. Kraft Heinz
Simply Good vs. Hormel Foods Corp
Simply Good vs. Kellogg Company
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio