Correlation Between Carlson Investments and Gremi Media
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Gremi Media 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 Carlson Investments and Gremi Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Gremi Media SA, you can compare the effects of market volatilities on Carlson Investments and Gremi Media 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 Carlson Investments with a short position of Gremi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Gremi Media.
Diversification Opportunities for Carlson Investments and Gremi Media
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlson and Gremi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Gremi Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gremi Media SA and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Gremi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gremi Media SA has no effect on the direction of Carlson Investments i.e., Carlson Investments and Gremi Media go up and down completely randomly.
Pair Corralation between Carlson Investments and Gremi Media
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 3.18 times more return on investment than Gremi Media. However, Carlson Investments is 3.18 times more volatile than Gremi Media SA. It trades about 0.04 of its potential returns per unit of risk. Gremi Media SA is currently generating about 0.01 per unit of risk. If you would invest 450.00 in Carlson Investments SA on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Carlson Investments SA or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.58% |
| Values | Daily Returns |
Carlson Investments SA vs. Gremi Media SA
Performance |
| Timeline |
| Carlson Investments |
| Gremi Media SA |
Carlson Investments and Gremi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Gremi Media
The main advantage of trading using opposite Carlson Investments and Gremi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Gremi Media 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 Gremi Media will offset losses from the drop in Gremi Media's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
| Gremi Media vs. Asseco Business Solutions | Gremi Media vs. Detalion Games SA | Gremi Media vs. Asseco South Eastern | Gremi Media vs. Movie Games 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |