Correlation Between Essential Utilities and Gungnir Resources

Can any of the company-specific risk be diversified away by investing in both Essential Utilities and Gungnir Resources 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 Essential Utilities and Gungnir Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Essential Utilities and Gungnir Resources

0.28

Correlation Coefficient

Essential Utilities  Gungnir Resources

Modest diversification

The 3 months correlation between Essential and Gungnir is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Essential Utilities and Gungnir Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gungnir Resources and Essential Utilities 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 Essential Utilities are associated (or correlated) with Gungnir Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gungnir Resources has no effect on the direction of Essential Utilities i.e., Essential Utilities and Gungnir Resources go up and down completely randomly.

Pair Corralation between Essential Utilities and Gungnir Resources

Given the investment horizon of 90 days Essential Utilities is expected to under-perform the Gungnir Resources. But the stock apears to be less risky and, when comparing its historical volatility, Essential Utilities is 4.43 times less risky than Gungnir Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Gungnir Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1.90  in Gungnir Resources on September 9, 2025 and sell it today you would earn a total of  0.00  from holding Gungnir Resources or generate 0.0% return on investment over 90 days.

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

Essential Utilities  vs.  Gungnir Resources

Essential Utilities

Risk-Adjusted Performance

Weakest

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

Gungnir Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gungnir Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gungnir Resources may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Essential Utilities and Gungnir Resources

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

The idea behind Essential Utilities and Gungnir Resources 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.