Correlation Between GS Retail and Wireless Power
Can any of the company-specific risk be diversified away by investing in both GS Retail and Wireless Power 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 Wireless Power 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 Wireless Power Amplifier, you can compare the effects of market volatilities on GS Retail and Wireless Power 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 Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Wireless Power.
Diversification Opportunities for GS Retail and Wireless Power
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between 007070 and Wireless is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier 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 Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of GS Retail i.e., GS Retail and Wireless Power go up and down completely randomly.
Pair Corralation between GS Retail and Wireless Power
Assuming the 90 days trading horizon GS Retail Co is expected to generate 1.0 times more return on investment than Wireless Power. However, GS Retail is 1.0 times more volatile than Wireless Power Amplifier. It trades about 0.26 of its potential returns per unit of risk. Wireless Power Amplifier is currently generating about -0.32 per unit of risk. If you would invest 2,080,000 in GS Retail Co on August 31, 2024 and sell it today you would earn a total of 235,000 from holding GS Retail Co or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Retail Co vs. Wireless Power Amplifier
Performance |
| Timeline |
| GS Retail |
| Wireless Power Amplifier |
GS Retail and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Wireless Power
The main advantage of trading using opposite GS Retail and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail vs. Microfriend |
| Wireless Power vs. Total Soft Bank | Wireless Power vs. LG Household Healthcare | Wireless Power vs. Nice Information Telecommunication | Wireless Power vs. Korea Computer |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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