Correlation Between SOL-GEL TECHN and Global Ship
Can any of the company-specific risk be diversified away by investing in both SOL-GEL TECHN and Global Ship 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 SOL-GEL TECHN and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOL GEL TECHN IS 10 and Global Ship Lease, you can compare the effects of market volatilities on SOL-GEL TECHN and Global Ship 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 SOL-GEL TECHN with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOL-GEL TECHN and Global Ship.
Diversification Opportunities for SOL-GEL TECHN and Global Ship
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOL-GEL and Global is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SOL GEL TECHN IS 10 and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and SOL-GEL TECHN 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 SOL GEL TECHN IS 10 are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of SOL-GEL TECHN i.e., SOL-GEL TECHN and Global Ship go up and down completely randomly.
Pair Corralation between SOL-GEL TECHN and Global Ship
Assuming the 90 days horizon SOL GEL TECHN IS 10 is expected to generate 5.34 times more return on investment than Global Ship. However, SOL-GEL TECHN is 5.34 times more volatile than Global Ship Lease. It trades about 0.13 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.07 per unit of risk. If you would invest 46.00 in SOL GEL TECHN IS 10 on September 14, 2024 and sell it today you would earn a total of 9.00 from holding SOL GEL TECHN IS 10 or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOL GEL TECHN IS 10 vs. Global Ship Lease
Performance |
| Timeline |
| SOL GEL TECHN |
| Global Ship Lease |
SOL-GEL TECHN and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOL-GEL TECHN and Global Ship
The main advantage of trading using opposite SOL-GEL TECHN and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOL-GEL TECHN position performs unexpectedly, Global Ship 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 Ship will offset losses from the drop in Global Ship's long position.| SOL-GEL TECHN vs. SYSTEMAIR AB | SOL-GEL TECHN vs. ALTAIR RES INC | SOL-GEL TECHN vs. Vastned Retail NV | SOL-GEL TECHN vs. National Retail Properties |
| Global Ship vs. Superior Plus Corp | Global Ship vs. SIVERS SEMICONDUCTORS AB | Global Ship vs. CHINA HUARONG ENERHD 50 | Global Ship vs. NORDIC HALIBUT AS |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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