Correlation Between Brooge Holdings and One Group
Can any of the company-specific risk be diversified away by investing in both Brooge Holdings and One Group 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 Brooge Holdings and One Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brooge Holdings and One Group Hospitality, you can compare the effects of market volatilities on Brooge Holdings and One Group 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 Brooge Holdings with a short position of One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brooge Holdings and One Group.
Diversification Opportunities for Brooge Holdings and One Group
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brooge and One is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Brooge Holdings and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality and Brooge Holdings 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 Brooge Holdings are associated (or correlated) with One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Brooge Holdings i.e., Brooge Holdings and One Group go up and down completely randomly.
Pair Corralation between Brooge Holdings and One Group
Given the investment horizon of 90 days Brooge Holdings is expected to generate 2.17 times more return on investment than One Group. However, Brooge Holdings is 2.17 times more volatile than One Group Hospitality. It trades about 0.22 of its potential returns per unit of risk. One Group Hospitality is currently generating about 0.0 per unit of risk. If you would invest 138.00 in Brooge Holdings on September 14, 2024 and sell it today you would earn a total of 41.00 from holding Brooge Holdings or generate 29.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brooge Holdings vs. One Group Hospitality
Performance |
| Timeline |
| Brooge Holdings |
| One Group Hospitality |
Brooge Holdings and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brooge Holdings and One Group
The main advantage of trading using opposite Brooge Holdings and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brooge Holdings position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| Brooge Holdings vs. Teekay | Brooge Holdings vs. Targa Resources | Brooge Holdings vs. Teekay Tankers | Brooge Holdings vs. Dynagas LNG Partners |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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