Correlation Between Foothills Exploration and EGPI Firecreek

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

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

Diversification Opportunities for Foothills Exploration and EGPI Firecreek

1.0

Correlation Coefficient

Foothills Exploration  EGPI Firecreek

No risk reduction

The 3 months correlation between Foothills and EGPI is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Foothills Exploration and EGPI Firecreek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGPI Firecreek and Foothills Exploration 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 Foothills Exploration are associated (or correlated) with EGPI Firecreek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGPI Firecreek has no effect on the direction of Foothills Exploration i.e., Foothills Exploration and EGPI Firecreek go up and down completely randomly.

Pair Corralation between Foothills Exploration and EGPI Firecreek

If you would invest  0.01  in EGPI Firecreek on May 3, 2025 and sell it today you would earn a total of  0.00  from holding EGPI Firecreek or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Foothills Exploration  vs.  EGPI Firecreek

Foothills Exploration

Risk-Adjusted Performance

Very Weak

Over the last 90 days Foothills Exploration has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

EGPI Firecreek

Risk-Adjusted Performance

Very Weak

Over the last 90 days EGPI Firecreek has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, EGPI Firecreek is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Foothills Exploration and EGPI Firecreek

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

The idea behind Foothills Exploration and EGPI Firecreek 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.