Correlation Between G Collado and Goodyear Tire
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By analyzing existing cross correlation between G Collado SAB and The Goodyear Tire, you can compare the effects of market volatilities on G Collado and Goodyear Tire 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 G Collado with a short position of Goodyear Tire. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Collado and Goodyear Tire.
Diversification Opportunities for G Collado and Goodyear Tire
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COLLADO and Goodyear is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding G Collado SAB and The Goodyear Tire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodyear Tire and G Collado 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 G Collado SAB are associated (or correlated) with Goodyear Tire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodyear Tire has no effect on the direction of G Collado i.e., G Collado and Goodyear Tire go up and down completely randomly.
Pair Corralation between G Collado and Goodyear Tire
Assuming the 90 days trading horizon G Collado SAB is expected to generate 0.12 times more return on investment than Goodyear Tire. However, G Collado SAB is 8.15 times less risky than Goodyear Tire. It trades about -0.01 of its potential returns per unit of risk. The Goodyear Tire is currently generating about -0.02 per unit of risk. If you would invest 788.00 in G Collado SAB on September 12, 2024 and sell it today you would lose (8.00) from holding G Collado SAB or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Collado SAB vs. The Goodyear Tire
Performance |
| Timeline |
| G Collado SAB |
| Goodyear Tire |
G Collado and Goodyear Tire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Collado and Goodyear Tire
The main advantage of trading using opposite G Collado and Goodyear Tire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Collado position performs unexpectedly, Goodyear Tire 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 Goodyear Tire will offset losses from the drop in Goodyear Tire's long position.| G Collado vs. Grupo Hotelero Santa | G Collado vs. Cognizant Technology Solutions | G Collado vs. Micron Technology | G Collado vs. CVS Health |
| Goodyear Tire vs. Ameriprise Financial | Goodyear Tire vs. Martin Marietta Materials | Goodyear Tire vs. FIBRA Storage | Goodyear Tire vs. Grupo Hotelero Santa |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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