Correlation Between 4Dmedical and Gtn
Can any of the company-specific risk be diversified away by investing in both 4Dmedical and Gtn 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 4Dmedical and Gtn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Dmedical and Gtn, you can compare the effects of market volatilities on 4Dmedical and Gtn 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 4Dmedical with a short position of Gtn. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Dmedical and Gtn.
Diversification Opportunities for 4Dmedical and Gtn
Very good diversification
The 3 months correlation between 4Dmedical and Gtn is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding 4Dmedical and Gtn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gtn and 4Dmedical 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 4Dmedical are associated (or correlated) with Gtn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gtn has no effect on the direction of 4Dmedical i.e., 4Dmedical and Gtn go up and down completely randomly.
Pair Corralation between 4Dmedical and Gtn
Assuming the 90 days trading horizon 4Dmedical is expected to generate 2.17 times more return on investment than Gtn. However, 4Dmedical is 2.17 times more volatile than Gtn. It trades about 0.03 of its potential returns per unit of risk. Gtn is currently generating about 0.03 per unit of risk. If you would invest 45.00 in 4Dmedical on October 11, 2024 and sell it today you would earn a total of 4.00 from holding 4Dmedical or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Dmedical vs. Gtn
Performance |
| Timeline |
| 4Dmedical |
| Gtn |
4Dmedical and Gtn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Dmedical and Gtn
The main advantage of trading using opposite 4Dmedical and Gtn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Dmedical position performs unexpectedly, Gtn 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 Gtn will offset losses from the drop in Gtn's long position.| 4Dmedical vs. Cleanaway Waste Management | 4Dmedical vs. Clime Investment Management | 4Dmedical vs. Thorney Technologies | 4Dmedical vs. Auswide Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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