Correlation Between Experian Plc and Geopulse Exploration

Can any of the company-specific risk be diversified away by investing in both Experian Plc and Geopulse Exploration 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 Experian Plc and Geopulse Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Experian plc PK and Geopulse Exploration, you can compare the effects of market volatilities on Experian Plc and Geopulse Exploration 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 Experian Plc with a short position of Geopulse Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Experian Plc and Geopulse Exploration.

Diversification Opportunities for Experian Plc and Geopulse Exploration

-0.75

Correlation Coefficient

Experian Plc  Geopulse Exploration

Pay attention - limited upside

The 3 months correlation between Experian and Geopulse is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Experian plc PK and Geopulse Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geopulse Exploration and Experian Plc 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 Experian plc PK are associated (or correlated) with Geopulse Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geopulse Exploration has no effect on the direction of Experian Plc i.e., Experian Plc and Geopulse Exploration go up and down completely randomly.

Pair Corralation between Experian Plc and Geopulse Exploration

Assuming the 90 days horizon Experian Plc is expected to generate 24.85 times less return on investment than Geopulse Exploration. But when comparing it to its historical volatility, Experian plc PK is 15.42 times less risky than Geopulse Exploration. It trades about 0.06 of its potential returns per unit of risk. Geopulse Exploration is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.75  in Geopulse Exploration on July 26, 2025 and sell it today you would earn a total of  6.02  from holding Geopulse Exploration or generate 802.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.4%
Values	Daily Returns

Experian plc PK  vs.  Geopulse Exploration

Experian plc PK

Risk-Adjusted Performance

Weakest

Over the last 90 days Experian plc PK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Geopulse Exploration

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Geopulse Exploration are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Geopulse Exploration unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Experian Plc and Geopulse Exploration

The main advantage of trading using opposite Experian Plc and Geopulse Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Experian Plc position performs unexpectedly, Geopulse Exploration 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 Geopulse Exploration will offset losses from the drop in Geopulse Exploration's long position.

The idea behind Experian plc PK and Geopulse Exploration 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.