Correlation Between VIRGIN WINES and GBS Software
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES and GBS Software 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 VIRGIN WINES and GBS Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and GBS Software AG, you can compare the effects of market volatilities on VIRGIN WINES and GBS Software 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 VIRGIN WINES with a short position of GBS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and GBS Software.
Diversification Opportunities for VIRGIN WINES and GBS Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and GBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and GBS Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Software AG and VIRGIN WINES 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 VIRGIN WINES UK are associated (or correlated) with GBS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Software AG has no effect on the direction of VIRGIN WINES i.e., VIRGIN WINES and GBS Software go up and down completely randomly.
Pair Corralation between VIRGIN WINES and GBS Software
If you would invest 260.00 in GBS Software AG on October 30, 2024 and sell it today you would earn a total of 42.00 from holding GBS Software AG or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.3% |
| Values | Daily Returns |
VIRGIN WINES UK vs. GBS Software AG
Performance |
| Timeline |
| VIRGIN WINES UK |
| GBS Software AG |
VIRGIN WINES and GBS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and GBS Software
The main advantage of trading using opposite VIRGIN WINES and GBS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES position performs unexpectedly, GBS Software 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 GBS Software will offset losses from the drop in GBS Software's long position.| VIRGIN WINES vs. Minerals Technologies | VIRGIN WINES vs. MCEWEN MINING INC | VIRGIN WINES vs. MAGNUM MINING EXP | VIRGIN WINES vs. Yanzhou Coal Mining |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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