Correlation Between ConvaTec Group and GlucoTrack
Can any of the company-specific risk be diversified away by investing in both ConvaTec Group and GlucoTrack 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 ConvaTec Group and GlucoTrack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConvaTec Group Plc and GlucoTrack, you can compare the effects of market volatilities on ConvaTec Group and GlucoTrack 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 ConvaTec Group with a short position of GlucoTrack. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConvaTec Group and GlucoTrack.
Diversification Opportunities for ConvaTec Group and GlucoTrack
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ConvaTec and GlucoTrack is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ConvaTec Group Plc and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack and ConvaTec 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 ConvaTec Group Plc are associated (or correlated) with GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of ConvaTec Group i.e., ConvaTec Group and GlucoTrack go up and down completely randomly.
Pair Corralation between ConvaTec Group and GlucoTrack
Assuming the 90 days horizon ConvaTec Group Plc is expected to generate 0.35 times more return on investment than GlucoTrack. However, ConvaTec Group Plc is 2.89 times less risky than GlucoTrack. It trades about 0.0 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.19 per unit of risk. If you would invest 310.00 in ConvaTec Group Plc on August 29, 2024 and sell it today you would lose (15.00) from holding ConvaTec Group Plc or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
ConvaTec Group Plc vs. GlucoTrack
Performance |
| Timeline |
| ConvaTec Group Plc |
| GlucoTrack |
ConvaTec Group and GlucoTrack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConvaTec Group and GlucoTrack
The main advantage of trading using opposite ConvaTec Group and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConvaTec Group position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.| ConvaTec Group vs. Edgewell Personal Care | ConvaTec Group vs. Rocky Brands | ConvaTec Group vs. Integral Ad Science | ConvaTec Group vs. Radcom |
| GlucoTrack vs. Nexgel Inc | GlucoTrack vs. Avinger | GlucoTrack vs. Sharps Technology | GlucoTrack vs. Innovative Eyewear |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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