Correlation Between GRIPM Advanced and Advanced Technology
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By analyzing existing cross correlation between GRIPM Advanced Materials and Advanced Technology Materials, you can compare the effects of market volatilities on GRIPM Advanced and Advanced Technology 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 GRIPM Advanced with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Advanced Technology.
Diversification Opportunities for GRIPM Advanced and Advanced Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRIPM and Advanced is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Advanced Technology go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Advanced Technology
Assuming the 90 days trading horizon GRIPM Advanced is expected to generate 7.54 times less return on investment than Advanced Technology. In addition to that, GRIPM Advanced is 1.29 times more volatile than Advanced Technology Materials. It trades about 0.01 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.12 per unit of volatility. If you would invest 846.00 in Advanced Technology Materials on September 1, 2024 and sell it today you would earn a total of 375.00 from holding Advanced Technology Materials or generate 44.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Advanced Technology Materials
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Advanced Technology |
GRIPM Advanced and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Advanced Technology
The main advantage of trading using opposite GRIPM Advanced and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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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