Correlation Between Clover Power and GFPT Public
Can any of the company-specific risk be diversified away by investing in both Clover Power and GFPT Public 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 Clover Power and GFPT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clover Power PCL and GFPT Public, you can compare the effects of market volatilities on Clover Power and GFPT Public 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 Clover Power with a short position of GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clover Power and GFPT Public.
Diversification Opportunities for Clover Power and GFPT Public
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clover and GFPT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Clover Power PCL and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT Public and Clover Power 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 Clover Power PCL are associated (or correlated) with GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of Clover Power i.e., Clover Power and GFPT Public go up and down completely randomly.
Pair Corralation between Clover Power and GFPT Public
Assuming the 90 days horizon Clover Power PCL is expected to under-perform the GFPT Public. In addition to that, Clover Power is 2.45 times more volatile than GFPT Public. It trades about -0.28 of its total potential returns per unit of risk. GFPT Public is currently generating about -0.29 per unit of volatility. If you would invest 1,170 in GFPT Public on August 25, 2024 and sell it today you would lose (110.00) from holding GFPT Public or give up 9.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clover Power PCL vs. GFPT Public
Performance |
| Timeline |
| Clover Power PCL |
| GFPT Public |
Clover Power and GFPT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clover Power and GFPT Public
The main advantage of trading using opposite Clover Power and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clover Power position performs unexpectedly, GFPT Public 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 GFPT Public will offset losses from the drop in GFPT Public's long position.| Clover Power vs. Delta Electronics Public | Clover Power vs. Delta Electronics Public | Clover Power vs. Airports of Thailand | Clover Power vs. Airports of Thailand |
| GFPT Public vs. CP ALL Public | GFPT Public vs. Carabao Group Public | GFPT Public vs. Thai Union Group | GFPT Public vs. Minor International 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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