Correlation Between City Sports and Globlex Holding
Can any of the company-specific risk be diversified away by investing in both City Sports and Globlex Holding 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 City Sports and Globlex Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Sports and and Globlex Holding Management, you can compare the effects of market volatilities on City Sports and Globlex Holding 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 City Sports with a short position of Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Sports and Globlex Holding.
Diversification Opportunities for City Sports and Globlex Holding
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between City and Globlex is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding City Sports and and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana and City Sports 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 City Sports and are associated (or correlated) with Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of City Sports i.e., City Sports and Globlex Holding go up and down completely randomly.
Pair Corralation between City Sports and Globlex Holding
Assuming the 90 days trading horizon City Sports and is expected to generate 0.07 times more return on investment than Globlex Holding. However, City Sports and is 13.52 times less risky than Globlex Holding. It trades about 0.41 of its potential returns per unit of risk. Globlex Holding Management is currently generating about 0.01 per unit of risk. If you would invest 8,950 in City Sports and on October 25, 2024 and sell it today you would earn a total of 75.00 from holding City Sports and or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Sports and vs. Globlex Holding Management
Performance |
| Timeline |
| City Sports |
| Globlex Holding Mana |
City Sports and Globlex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Sports and Globlex Holding
The main advantage of trading using opposite City Sports and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Sports position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding's long position.| City Sports vs. Chiangmai Frozen Foods | City Sports vs. Dynasty Ceramic Public | City Sports vs. Castle Peak Holdings | City Sports vs. CPL Group Public |
| Globlex Holding vs. Asia Plus Group | Globlex Holding vs. Eastern Commercial Leasing | Globlex Holding vs. Country Group Holdings | Globlex Holding vs. EMC Public |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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