Correlation Between Auction Technology and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Auction Technology and Grand Vision 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 Auction Technology and Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and Grand Vision Media, you can compare the effects of market volatilities on Auction Technology and Grand Vision 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 Auction Technology with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and Grand Vision.
Diversification Opportunities for Auction Technology and Grand Vision
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auction and Grand is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Auction Technology 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 Auction Technology Group are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Auction Technology i.e., Auction Technology and Grand Vision go up and down completely randomly.
Pair Corralation between Auction Technology and Grand Vision
If you would invest 45,600 in Auction Technology Group on September 15, 2024 and sell it today you would earn a total of 11,900 from holding Auction Technology Group or generate 26.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auction Technology Group vs. Grand Vision Media
Performance |
| Timeline |
| Auction Technology |
| Grand Vision Media |
Auction Technology and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and Grand Vision
The main advantage of trading using opposite Auction Technology and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology position performs unexpectedly, Grand Vision 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 Vision will offset losses from the drop in Grand Vision's long position.| Auction Technology vs. Datagroup SE | Auction Technology vs. United Internet AG | Auction Technology vs. CAP LEASE AVIATION | Auction Technology vs. Universal Display Corp |
| Grand Vision vs. Bytes Technology | Grand Vision vs. Auction Technology Group | Grand Vision vs. Microchip Technology | Grand Vision vs. International Biotechnology Trust |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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