Correlation Between Country Group and Gratitude Infinite
Can any of the company-specific risk be diversified away by investing in both Country Group and Gratitude Infinite 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 Country Group and Gratitude Infinite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Country Group Holdings and Gratitude Infinite Public, you can compare the effects of market volatilities on Country Group and Gratitude Infinite 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 Country Group with a short position of Gratitude Infinite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Group and Gratitude Infinite.
Diversification Opportunities for Country Group and Gratitude Infinite
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Country and Gratitude is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Country Group Holdings and Gratitude Infinite Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratitude Infinite Public and Country Group 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 Country Group Holdings are associated (or correlated) with Gratitude Infinite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gratitude Infinite Public has no effect on the direction of Country Group i.e., Country Group and Gratitude Infinite go up and down completely randomly.
Pair Corralation between Country Group and Gratitude Infinite
Assuming the 90 days trading horizon Country Group Holdings is expected to generate 13.82 times more return on investment than Gratitude Infinite. However, Country Group is 13.82 times more volatile than Gratitude Infinite Public. It trades about 0.04 of its potential returns per unit of risk. Gratitude Infinite Public is currently generating about -0.01 per unit of risk. If you would invest 65.00 in Country Group Holdings on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Country Group Holdings or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Country Group Holdings vs. Gratitude Infinite Public
Performance |
| Timeline |
| Country Group Holdings |
| Gratitude Infinite Public |
Country Group and Gratitude Infinite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Group and Gratitude Infinite
The main advantage of trading using opposite Country Group and Gratitude Infinite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Group position performs unexpectedly, Gratitude Infinite 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 Gratitude Infinite will offset losses from the drop in Gratitude Infinite's long position.| Country Group vs. Asia Plus Group | Country Group vs. Globlex Holding Management | Country Group vs. Asia Green Energy | Country Group vs. Amanah Leasing Public |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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