Correlation Between Brainsway and GN Store
Can any of the company-specific risk be diversified away by investing in both Brainsway and GN Store 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 Brainsway and GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brainsway and GN Store Nord, you can compare the effects of market volatilities on Brainsway and GN Store 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 Brainsway with a short position of GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainsway and GN Store.
Diversification Opportunities for Brainsway and GN Store
Pay attention - limited upside
The 3 months correlation between Brainsway and GGNDF is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Brainsway and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord and Brainsway 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 Brainsway are associated (or correlated) with GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Brainsway i.e., Brainsway and GN Store go up and down completely randomly.
Pair Corralation between Brainsway and GN Store
Given the investment horizon of 90 days Brainsway is expected to generate 1.1 times more return on investment than GN Store. However, Brainsway is 1.1 times more volatile than GN Store Nord. It trades about 0.09 of its potential returns per unit of risk. GN Store Nord is currently generating about -0.01 per unit of risk. If you would invest 371.00 in Brainsway on August 29, 2024 and sell it today you would earn a total of 597.00 from holding Brainsway or generate 160.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brainsway vs. GN Store Nord
Performance |
| Timeline |
| Brainsway |
| GN Store Nord |
Brainsway and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brainsway and GN Store
The main advantage of trading using opposite Brainsway and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brainsway position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| Brainsway vs. Delcath Systems | Brainsway vs. Paragon 28 | Brainsway vs. USA Equities Corp | Brainsway vs. Venus Concept |
| GN Store vs. Brainsway | GN Store vs. Bluejay Diagnostics | GN Store vs. Venus Concept | GN Store vs. Icecure Medical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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