Correlation Between Coor Service and Global Net
Can any of the company-specific risk be diversified away by investing in both Coor Service and Global Net 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 Coor Service and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Global Net Lease, you can compare the effects of market volatilities on Coor Service and Global Net 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 Coor Service with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Global Net.
Diversification Opportunities for Coor Service and Global Net
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coor and Global is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Coor Service 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 Coor Service Management are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Coor Service i.e., Coor Service and Global Net go up and down completely randomly.
Pair Corralation between Coor Service and Global Net
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the Global Net. But the stock apears to be less risky and, when comparing its historical volatility, Coor Service Management is 1.03 times less risky than Global Net. The stock trades about -0.13 of its potential returns per unit of risk. The Global Net Lease is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 711.00 in Global Net Lease on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Global Net Lease or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.23% |
| Values | Daily Returns |
Coor Service Management vs. Global Net Lease
Performance |
| Timeline |
| Coor Service Management |
| Global Net Lease |
Coor Service and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Global Net
The main advantage of trading using opposite Coor Service and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Coor Service vs. Uniper SE | Coor Service vs. Mulberry Group PLC | Coor Service vs. London Security Plc | Coor Service vs. Triad Group PLC |
| Global Net vs. GoldMining | Global Net vs. Porvair plc | Global Net vs. Norwegian Air Shuttle | Global Net vs. Science in Sport |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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