Correlation Between High Arctic and Pulse Seismic

Can any of the company-specific risk be diversified away by investing in both High Arctic and Pulse Seismic 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 High Arctic and Pulse Seismic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between High Arctic Energy and Pulse Seismic, you can compare the effects of market volatilities on High Arctic and Pulse Seismic 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 High Arctic with a short position of Pulse Seismic. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Arctic and Pulse Seismic.

Diversification Opportunities for High Arctic and Pulse Seismic

0.48

Correlation Coefficient

High Arctic  Pulse Seismic

Very weak diversification

The 3 months correlation between High and Pulse is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding High Arctic Energy and Pulse Seismic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulse Seismic and High Arctic 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 High Arctic Energy are associated (or correlated) with Pulse Seismic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulse Seismic has no effect on the direction of High Arctic i.e., High Arctic and Pulse Seismic go up and down completely randomly.

Pair Corralation between High Arctic and Pulse Seismic

Assuming the 90 days trading horizon High Arctic is expected to generate 9.89 times less return on investment than Pulse Seismic. In addition to that, High Arctic is 2.58 times more volatile than Pulse Seismic. It trades about 0.0 of its total potential returns per unit of risk. Pulse Seismic is currently generating about 0.08 per unit of volatility. If you would invest  143.00  in Pulse Seismic on April 22, 2025 and sell it today you would earn a total of  204.00  from holding Pulse Seismic or generate 142.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.19%
Values	Daily Returns

High Arctic Energy  vs.  Pulse Seismic

High Arctic Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in High Arctic Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, High Arctic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pulse Seismic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pulse Seismic are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Pulse Seismic displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with High Arctic and Pulse Seismic

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

The idea behind High Arctic Energy and Pulse Seismic 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 CEOs Directory module to screen CEOs from public companies around the world.