Correlation Between Gem Terminal and Excel Cell
Can any of the company-specific risk be diversified away by investing in both Gem Terminal and Excel Cell 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 Gem Terminal and Excel Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gem Terminal Industry and Excel Cell Electronic, you can compare the effects of market volatilities on Gem Terminal and Excel Cell 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 Gem Terminal with a short position of Excel Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Terminal and Excel Cell.
Diversification Opportunities for Gem Terminal and Excel Cell
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Excel is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gem Terminal Industry and Excel Cell Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excel Cell Electronic and Gem Terminal 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 Gem Terminal Industry are associated (or correlated) with Excel Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excel Cell Electronic has no effect on the direction of Gem Terminal i.e., Gem Terminal and Excel Cell go up and down completely randomly.
Pair Corralation between Gem Terminal and Excel Cell
Assuming the 90 days trading horizon Gem Terminal Industry is expected to under-perform the Excel Cell. In addition to that, Gem Terminal is 2.0 times more volatile than Excel Cell Electronic. It trades about -0.06 of its total potential returns per unit of risk. Excel Cell Electronic is currently generating about -0.08 per unit of volatility. If you would invest 2,545 in Excel Cell Electronic on September 2, 2024 and sell it today you would lose (360.00) from holding Excel Cell Electronic or give up 14.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Terminal Industry vs. Excel Cell Electronic
Performance |
| Timeline |
| Gem Terminal Industry |
| Excel Cell Electronic |
Gem Terminal and Excel Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Terminal and Excel Cell
The main advantage of trading using opposite Gem Terminal and Excel Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Terminal position performs unexpectedly, Excel Cell 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 Excel Cell will offset losses from the drop in Excel Cell's long position.| Gem Terminal vs. BES Engineering Co | Gem Terminal vs. Continental Holdings Corp | Gem Terminal vs. Kee Tai Properties | Gem Terminal vs. Hung Sheng Construction |
| Excel Cell vs. BES Engineering Co | Excel Cell vs. Continental Holdings Corp | Excel Cell vs. Kee Tai Properties | Excel Cell vs. Hung Sheng Construction |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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