Correlation Between Adler Group and Grand City
Can any of the company-specific risk be diversified away by investing in both Adler Group and Grand City 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 Adler Group and Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adler Group SA and Grand City Properties, you can compare the effects of market volatilities on Adler Group and Grand City 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 Adler Group with a short position of Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adler Group and Grand City.
Diversification Opportunities for Adler Group and Grand City
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adler and Grand is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Adler Group SA and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties and Adler 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 Adler Group SA are associated (or correlated) with Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Adler Group i.e., Adler Group and Grand City go up and down completely randomly.
Pair Corralation between Adler Group and Grand City
If you would invest 35.00 in Adler Group SA on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Adler Group SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adler Group SA vs. Grand City Properties
Performance |
| Timeline |
| Adler Group SA |
| Grand City Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Adler Group and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adler Group and Grand City
The main advantage of trading using opposite Adler Group and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adler Group position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Adler Group vs. Aztec Land Comb | Adler Group vs. Bridgemarq Real Estate | Adler Group vs. Ambase Corp | Adler Group vs. Agritek Holdings |
| Grand City vs. J W Mays | Grand City vs. Frp Holdings Ord | Grand City vs. Maui Land Pineapple | Grand City vs. Fathom Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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