Correlation Between Challenger and GO2 People
Can any of the company-specific risk be diversified away by investing in both Challenger and GO2 People 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 Challenger and GO2 People into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Challenger and GO2 People, you can compare the effects of market volatilities on Challenger and GO2 People 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 Challenger with a short position of GO2 People. Check out your portfolio center. Please also check ongoing floating volatility patterns of Challenger and GO2 People.
Diversification Opportunities for Challenger and GO2 People
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Challenger and GO2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Challenger and GO2 People in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GO2 People and Challenger 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 Challenger are associated (or correlated) with GO2 People. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GO2 People has no effect on the direction of Challenger i.e., Challenger and GO2 People go up and down completely randomly.
Pair Corralation between Challenger and GO2 People
If you would invest 67.00 in GO2 People on September 26, 2024 and sell it today you would earn a total of 0.00 from holding GO2 People or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Challenger vs. GO2 People
Performance |
| Timeline |
| Challenger |
| GO2 People |
Challenger and GO2 People Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Challenger and GO2 People
The main advantage of trading using opposite Challenger and GO2 People positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Challenger position performs unexpectedly, GO2 People 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 GO2 People will offset losses from the drop in GO2 People's long position.The idea behind Challenger and GO2 People pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GO2 People vs. Aneka Tambang Tbk | GO2 People vs. Macquarie Group | GO2 People vs. Macquarie Group Ltd | GO2 People vs. Challenger |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| 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 | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |