Correlation Between Biztech Konsulting and GI Group
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting and GI 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 Biztech Konsulting and GI Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biztech Konsulting SA and GI Group Poland, you can compare the effects of market volatilities on Biztech Konsulting and GI 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 Biztech Konsulting with a short position of GI Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and GI Group.
Diversification Opportunities for Biztech Konsulting and GI Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biztech and GIG is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting SA and GI Group Poland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GI Group Poland and Biztech Konsulting 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 Biztech Konsulting SA are associated (or correlated) with GI Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GI Group Poland has no effect on the direction of Biztech Konsulting i.e., Biztech Konsulting and GI Group go up and down completely randomly.
Pair Corralation between Biztech Konsulting and GI Group
Assuming the 90 days trading horizon Biztech Konsulting SA is expected to generate 3.23 times more return on investment than GI Group. However, Biztech Konsulting is 3.23 times more volatile than GI Group Poland. It trades about 0.22 of its potential returns per unit of risk. GI Group Poland is currently generating about -0.09 per unit of risk. If you would invest 14.00 in Biztech Konsulting SA on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Biztech Konsulting SA or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Biztech Konsulting SA vs. GI Group Poland
Performance |
| Timeline |
| Biztech Konsulting |
| GI Group Poland |
Biztech Konsulting and GI Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and GI Group
The main advantage of trading using opposite Biztech Konsulting and GI Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting position performs unexpectedly, GI 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 GI Group will offset losses from the drop in GI Group's long position.| Biztech Konsulting vs. Clean Carbon Energy | Biztech Konsulting vs. ADX | Biztech Konsulting vs. Agroliga Group PLC | Biztech Konsulting vs. Vee SA |
| GI Group vs. Echo Investment SA | GI Group vs. Esotiq Henderson SA | GI Group vs. Asseco South Eastern | GI Group vs. Vercom SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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