Correlation Between GS Retail and Nature
Can any of the company-specific risk be diversified away by investing in both GS Retail and Nature 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 GS Retail and Nature into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and Nature and Environment, you can compare the effects of market volatilities on GS Retail and Nature 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 GS Retail with a short position of Nature. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Nature.
Diversification Opportunities for GS Retail and Nature
Weak diversification
The 3 months correlation between 007070 and Nature is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and Nature and Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nature and Environment and GS Retail 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 GS Retail Co are associated (or correlated) with Nature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nature and Environment has no effect on the direction of GS Retail i.e., GS Retail and Nature go up and down completely randomly.
Pair Corralation between GS Retail and Nature
Assuming the 90 days trading horizon GS Retail Co is expected to generate 0.83 times more return on investment than Nature. However, GS Retail Co is 1.21 times less risky than Nature. It trades about 0.01 of its potential returns per unit of risk. Nature and Environment is currently generating about -0.08 per unit of risk. If you would invest 2,312,630 in GS Retail Co on September 4, 2024 and sell it today you would earn a total of 2,370 from holding GS Retail Co or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.74% |
| Values | Daily Returns |
GS Retail Co vs. Nature and Environment
Performance |
| Timeline |
| GS Retail |
| Nature and Environment |
GS Retail and Nature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Nature
The main advantage of trading using opposite GS Retail and Nature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, Nature 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 Nature will offset losses from the drop in Nature's long position.| GS Retail vs. Eagle Veterinary Technology | GS Retail vs. Keyang Electric Machinery | GS Retail vs. Cots Technology Co | GS Retail vs. Sewoon Medical Co |
| Nature vs. Kyung In Synthetic Corp | Nature vs. Pureun Mutual Savings | Nature vs. GS Retail Co | Nature vs. Hannong Chemicals |
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 the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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