Correlation Between Goobit Group and Zwipe AS
Can any of the company-specific risk be diversified away by investing in both Goobit Group and Zwipe AS 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 Zwipe AS 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 Zwipe AS, you can compare the effects of market volatilities on Goobit Group and Zwipe AS 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 Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goobit Group and Zwipe AS.
Diversification Opportunities for Goobit Group and Zwipe AS
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goobit and Zwipe is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Goobit Group AB and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS 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 Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Goobit Group i.e., Goobit Group and Zwipe AS go up and down completely randomly.
Pair Corralation between Goobit Group and Zwipe AS
Assuming the 90 days trading horizon Goobit Group AB is expected to generate 0.64 times more return on investment than Zwipe AS. However, Goobit Group AB is 1.56 times less risky than Zwipe AS. It trades about -0.04 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.31 per unit of risk. If you would invest 16.00 in Goobit Group AB on August 29, 2024 and sell it today you would lose (1.00) from holding Goobit Group AB or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goobit Group AB vs. Zwipe AS
Performance |
| Timeline |
| Goobit Group AB |
| Zwipe AS |
Goobit Group and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goobit Group and Zwipe AS
The main advantage of trading using opposite Goobit Group and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goobit Group position performs unexpectedly, Zwipe AS 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 Zwipe AS will offset losses from the drop in Zwipe AS's long position.The idea behind Goobit Group AB and Zwipe AS 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.| Zwipe AS vs. Goobit Group AB | Zwipe AS vs. CoinShares International | Zwipe AS vs. Zignsec AB | Zwipe AS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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