Correlation Between Goobit Group and Safello Group
Can any of the company-specific risk be diversified away by investing in both Goobit Group and Safello 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 Goobit Group and Safello Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goobit Group AB and Safello Group AB, you can compare the effects of market volatilities on Goobit Group and Safello 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 Goobit Group with a short position of Safello Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goobit Group and Safello Group.
Diversification Opportunities for Goobit Group and Safello Group
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goobit and Safello is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Goobit Group AB and Safello Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safello Group AB and Goobit 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 Goobit Group AB are associated (or correlated) with Safello Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safello Group AB has no effect on the direction of Goobit Group i.e., Goobit Group and Safello Group go up and down completely randomly.
Pair Corralation between Goobit Group and Safello Group
Assuming the 90 days trading horizon Goobit Group AB is expected to under-perform the Safello Group. But the stock apears to be less risky and, when comparing its historical volatility, Goobit Group AB is 1.48 times less risky than Safello Group. The stock trades about -0.04 of its potential returns per unit of risk. The Safello Group AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Safello Group AB on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Safello Group AB or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goobit Group AB vs. Safello Group AB
Performance |
| Timeline |
| Goobit Group AB |
| Safello Group AB |
Goobit Group and Safello Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goobit Group and Safello Group
The main advantage of trading using opposite Goobit Group and Safello Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goobit Group position performs unexpectedly, Safello 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 Safello Group will offset losses from the drop in Safello Group's long position.The idea behind Goobit Group AB and Safello Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Safello Group vs. Goobit Group AB | Safello Group vs. CoinShares International | Safello Group vs. Zignsec AB | Safello Group vs. Checkin Group AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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