Correlation Between Capital Income and GRG Banking
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By analyzing existing cross correlation between Capital Income Builder and GRG Banking Equipment, you can compare the effects of market volatilities on Capital Income and GRG Banking 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 Capital Income with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and GRG Banking.
Diversification Opportunities for Capital Income and GRG Banking
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and GRG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Capital Income 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 Capital Income Builder are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Capital Income i.e., Capital Income and GRG Banking go up and down completely randomly.
Pair Corralation between Capital Income and GRG Banking
Assuming the 90 days horizon Capital Income Builder is expected to generate 0.31 times more return on investment than GRG Banking. However, Capital Income Builder is 3.2 times less risky than GRG Banking. It trades about 0.24 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.19 per unit of risk. If you would invest 6,906 in Capital Income Builder on October 24, 2024 and sell it today you would earn a total of 171.00 from holding Capital Income Builder or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Capital Income Builder vs. GRG Banking Equipment
Performance |
| Timeline |
| Capital Income Builder |
| GRG Banking Equipment |
Capital Income and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and GRG Banking
The main advantage of trading using opposite Capital Income and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Capital Income vs. Old Westbury Municipal | Capital Income vs. Lord Abbett Intermediate | Capital Income vs. Blackrock Pa Muni | Capital Income vs. Inverse Government Long |
| GRG Banking vs. Runjian Communication Co | GRG Banking vs. FSPG Hi Tech Co | GRG Banking vs. Tianjin Hi Tech Development | GRG Banking vs. JS Corrugating Machinery |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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