Correlation Between Credit Acceptance and G2D Investments
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and G2D Investments 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 Credit Acceptance and G2D Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and G2D Investments, you can compare the effects of market volatilities on Credit Acceptance and G2D Investments 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 Credit Acceptance with a short position of G2D Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and G2D Investments.
Diversification Opportunities for Credit Acceptance and G2D Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and G2D is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and G2D Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G2D Investments and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with G2D Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G2D Investments has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and G2D Investments go up and down completely randomly.
Pair Corralation between Credit Acceptance and G2D Investments
If you would invest 206.00 in G2D Investments on September 2, 2024 and sell it today you would lose (1.00) from holding G2D Investments or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. G2D Investments
Performance |
| Timeline |
| Credit Acceptance |
| G2D Investments |
Credit Acceptance and G2D Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and G2D Investments
The main advantage of trading using opposite Credit Acceptance and G2D Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, G2D Investments 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 G2D Investments will offset losses from the drop in G2D Investments' long position.| Credit Acceptance vs. Prudential Financial | Credit Acceptance vs. Deutsche Bank Aktiengesellschaft | Credit Acceptance vs. Hospital Mater Dei | Credit Acceptance vs. salesforce inc |
| G2D Investments vs. Deutsche Bank Aktiengesellschaft | G2D Investments vs. Cognizant Technology Solutions | G2D Investments vs. Unity Software | G2D Investments vs. Palantir Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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