Correlation Between GS Retail and VAIV
Can any of the company-specific risk be diversified away by investing in both GS Retail and VAIV 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 VAIV 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 VAIV Co, you can compare the effects of market volatilities on GS Retail and VAIV 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 VAIV. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and VAIV.
Diversification Opportunities for GS Retail and VAIV
Weak diversification
The 3 months correlation between 007070 and VAIV is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and VAIV Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VAIV 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 VAIV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VAIV has no effect on the direction of GS Retail i.e., GS Retail and VAIV go up and down completely randomly.
Pair Corralation between GS Retail and VAIV
Assuming the 90 days trading horizon GS Retail Co is expected to generate 0.39 times more return on investment than VAIV. However, GS Retail Co is 2.59 times less risky than VAIV. It trades about 0.18 of its potential returns per unit of risk. VAIV Co is currently generating about 0.0 per unit of risk. If you would invest 2,160,000 in GS Retail Co on September 1, 2024 and sell it today you would earn a total of 155,000 from holding GS Retail Co or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GS Retail Co vs. VAIV Co
Performance |
| Timeline |
| GS Retail |
| VAIV |
GS Retail and VAIV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and VAIV
The main advantage of trading using opposite GS Retail and VAIV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, VAIV 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 VAIV will offset losses from the drop in VAIV's long position.| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail vs. Microfriend |
| VAIV vs. SH Energy Chemical | VAIV vs. Seoul Semiconductor Co | VAIV vs. iNtRON Biotechnology | VAIV vs. GS Retail Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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