Correlation Between 2G ENERGY and New York
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and New York 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 2G ENERGY and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and The New York, you can compare the effects of market volatilities on 2G ENERGY and New York 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 2G ENERGY with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and New York.
Diversification Opportunities for 2G ENERGY and New York
Good diversification
The 3 months correlation between 2GB and New is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and The New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York and 2G ENERGY 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 2G ENERGY are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and New York go up and down completely randomly.
Pair Corralation between 2G ENERGY and New York
Assuming the 90 days trading horizon 2G ENERGY is expected to generate 0.87 times more return on investment than New York. However, 2G ENERGY is 1.15 times less risky than New York. It trades about -0.1 of its potential returns per unit of risk. The New York is currently generating about -0.21 per unit of risk. If you would invest 2,465 in 2G ENERGY on November 27, 2024 and sell it today you would lose (120.00) from holding 2G ENERGY or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
2G ENERGY vs. The New York
Performance |
| Timeline |
| 2G ENERGY |
| New York |
2G ENERGY and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and New York
The main advantage of trading using opposite 2G ENERGY and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| 2G ENERGY vs. NH HOTEL GROUP | 2G ENERGY vs. Summit Hotel Properties | 2G ENERGY vs. Hitachi Construction Machinery | 2G ENERGY vs. InterContinental Hotels Group |
| New York vs. CORNISH METALS INC | New York vs. GALENA MINING LTD | New York vs. JAPAN AIRLINES | New York vs. GOLDQUEST MINING |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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