Correlation Between Alibaba Group and Gentera SAB
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By analyzing existing cross correlation between Alibaba Group Holding and Gentera SAB de, you can compare the effects of market volatilities on Alibaba Group and Gentera SAB 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 Alibaba Group with a short position of Gentera SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and Gentera SAB.
Diversification Opportunities for Alibaba Group and Gentera SAB
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alibaba and Gentera is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and Gentera SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentera SAB de and Alibaba 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 Alibaba Group Holding are associated (or correlated) with Gentera SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentera SAB de has no effect on the direction of Alibaba Group i.e., Alibaba Group and Gentera SAB go up and down completely randomly.
Pair Corralation between Alibaba Group and Gentera SAB
Assuming the 90 days trading horizon Alibaba Group is expected to generate 1.25 times less return on investment than Gentera SAB. In addition to that, Alibaba Group is 1.03 times more volatile than Gentera SAB de. It trades about 0.06 of its total potential returns per unit of risk. Gentera SAB de is currently generating about 0.08 per unit of volatility. If you would invest 1,790 in Gentera SAB de on September 14, 2024 and sell it today you would earn a total of 854.00 from holding Gentera SAB de or generate 47.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alibaba Group Holding vs. Gentera SAB de
Performance |
| Timeline |
| Alibaba Group Holding |
| Gentera SAB de |
Alibaba Group and Gentera SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alibaba Group and Gentera SAB
The main advantage of trading using opposite Alibaba Group and Gentera SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group position performs unexpectedly, Gentera SAB 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 Gentera SAB will offset losses from the drop in Gentera SAB's long position.| Alibaba Group vs. Monster Beverage Corp | Alibaba Group vs. KB Home | Alibaba Group vs. Grupo Sports World | Alibaba Group vs. New Oriental Education |
| Gentera SAB vs. Samsung Electronics Co | Gentera SAB vs. Sony Group | Gentera SAB vs. Taiwan Semiconductor Manufacturing | Gentera SAB vs. Alibaba Group Holding |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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