Correlation Between Beston Global and GDI Property
Can any of the company-specific risk be diversified away by investing in both Beston Global 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 Beston Global and GDI Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and GDI Property Group, you can compare the effects of market volatilities on Beston Global 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 Beston Global with a short position of GDI Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and GDI Property.
Diversification Opportunities for Beston Global and GDI Property
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and GDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food 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 Beston Global 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 Beston Global Food 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 Beston Global i.e., Beston Global and GDI Property go up and down completely randomly.
Pair Corralation between Beston Global and GDI Property
Assuming the 90 days trading horizon Beston Global Food is expected to generate 6.17 times more return on investment than GDI Property. However, Beston Global is 6.17 times more volatile than GDI Property Group. It trades about 0.03 of its potential returns per unit of risk. GDI Property Group is currently generating about 0.0 per unit of risk. If you would invest 1.00 in Beston Global Food on September 12, 2024 and sell it today you would lose (0.70) from holding Beston Global Food or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. GDI Property Group
Performance |
| Timeline |
| Beston Global Food |
| GDI Property Group |
Beston Global and GDI Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and GDI Property
The main advantage of trading using opposite Beston Global and GDI Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global 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.| Beston Global vs. Thorney Technologies | Beston Global vs. Readytech Holdings | Beston Global vs. Qbe Insurance Group | Beston Global vs. My Foodie Box |
| GDI Property vs. Beston Global Food | GDI Property vs. Farm Pride Foods | GDI Property vs. Ainsworth Game Technology | GDI Property vs. Chalice Mining Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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