Correlation Between Capital One and Grenke AG
Can any of the company-specific risk be diversified away by investing in both Capital One and Grenke AG 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 Capital One and Grenke AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital One Financial and Grenke AG, you can compare the effects of market volatilities on Capital One and Grenke AG 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 One with a short position of Grenke AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital One and Grenke AG.
Diversification Opportunities for Capital One and Grenke AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Grenke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital One Financial and Grenke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenke AG and Capital One 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 One Financial are associated (or correlated) with Grenke AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenke AG has no effect on the direction of Capital One i.e., Capital One and Grenke AG go up and down completely randomly.
Pair Corralation between Capital One and Grenke AG
If you would invest 12,357 in Capital One Financial on September 12, 2024 and sell it today you would earn a total of 5,343 from holding Capital One Financial or generate 43.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Capital One Financial vs. Grenke AG
Performance |
| Timeline |
| Capital One Financial |
| Grenke AG |
Capital One and Grenke AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital One and Grenke AG
The main advantage of trading using opposite Capital One and Grenke AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital One position performs unexpectedly, Grenke AG 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 Grenke AG will offset losses from the drop in Grenke AG's long position.| Capital One vs. Mastercard | Capital One vs. American Express | Capital One vs. ORIX Corporation | Capital One vs. Superior Plus Corp |
| Grenke AG vs. URBAN OUTFITTERS | Grenke AG vs. Consolidated Communications Holdings | Grenke AG vs. Ming Le Sports | Grenke AG vs. Playa Hotels Resorts |
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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