Correlation Between Beam Communications and GDI Property
Can any of the company-specific risk be diversified away by investing in both Beam Communications and GDI Property 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 Beam Communications and GDI Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beam Communications Holdings and GDI Property Group, you can compare the effects of market volatilities on Beam Communications and GDI Property 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 Beam Communications with a short position of GDI Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beam Communications and GDI Property.
Diversification Opportunities for Beam Communications and GDI Property
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beam and GDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beam Communications Holdings and GDI Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDI Property Group and Beam Communications 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 Beam Communications Holdings are associated (or correlated) with GDI Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDI Property Group has no effect on the direction of Beam Communications i.e., Beam Communications and GDI Property go up and down completely randomly.
Pair Corralation between Beam Communications and GDI Property
If you would invest (100.00) in GDI Property Group on November 8, 2024 and sell it today you would earn a total of 100.00 from holding GDI Property Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Beam Communications Holdings vs. GDI Property Group
Performance |
| Timeline |
| Beam Communications |
| GDI Property Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Beam Communications and GDI Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beam Communications and GDI Property
The main advantage of trading using opposite Beam Communications and GDI Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beam Communications position performs unexpectedly, GDI Property 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 GDI Property will offset losses from the drop in GDI Property's long position.| Beam Communications vs. Nufarm Finance NZ | Beam Communications vs. COAST ENTERTAINMENT HOLDINGS | Beam Communications vs. Ainsworth Game Technology | Beam Communications vs. Platinum Asset Management |
| GDI Property vs. Centaurus Metals | GDI Property vs. Aurelia Metals | GDI Property vs. Duketon Mining | GDI Property vs. Galena Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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