Correlation Between Gemfields Group and Casio Computer
Can any of the company-specific risk be diversified away by investing in both Gemfields Group and Casio Computer 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 Gemfields Group and Casio Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemfields Group Limited and Casio Computer CoLtd, you can compare the effects of market volatilities on Gemfields Group and Casio Computer 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 Gemfields Group with a short position of Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemfields Group and Casio Computer.
Diversification Opportunities for Gemfields Group and Casio Computer
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gemfields and Casio is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gemfields Group Limited and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd and Gemfields Group 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 Gemfields Group Limited are associated (or correlated) with Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of Gemfields Group i.e., Gemfields Group and Casio Computer go up and down completely randomly.
Pair Corralation between Gemfields Group and Casio Computer
Assuming the 90 days horizon Gemfields Group Limited is expected to under-perform the Casio Computer. In addition to that, Gemfields Group is 3.66 times more volatile than Casio Computer CoLtd. It trades about -0.12 of its total potential returns per unit of risk. Casio Computer CoLtd is currently generating about 0.07 per unit of volatility. If you would invest 718.00 in Casio Computer CoLtd on October 14, 2024 and sell it today you would earn a total of 49.00 from holding Casio Computer CoLtd or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemfields Group Limited vs. Casio Computer CoLtd
Performance |
| Timeline |
| Gemfields Group |
| Casio Computer CoLtd |
Gemfields Group and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemfields Group and Casio Computer
The main advantage of trading using opposite Gemfields Group and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemfields Group position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| Gemfields Group vs. Casio Computer CoLtd | Gemfields Group vs. Pembina Pipeline Corp | Gemfields Group vs. ALBIS LEASING AG | Gemfields Group vs. Wayside Technology Group |
| Casio Computer vs. Pembina Pipeline Corp | Casio Computer vs. CANON MARKETING JP | Casio Computer vs. FLOW TRADERS LTD | Casio Computer vs. Algonquin Power Utilities |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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