Correlation Between GlobalData PLC and Autins Group
Can any of the company-specific risk be diversified away by investing in both GlobalData PLC and Autins Group 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 GlobalData PLC and Autins Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalData PLC and Autins Group plc, you can compare the effects of market volatilities on GlobalData PLC and Autins Group 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 GlobalData PLC with a short position of Autins Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalData PLC and Autins Group.
Diversification Opportunities for GlobalData PLC and Autins Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GlobalData and Autins is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC and Autins Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autins Group plc and GlobalData PLC 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 GlobalData PLC are associated (or correlated) with Autins Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autins Group plc has no effect on the direction of GlobalData PLC i.e., GlobalData PLC and Autins Group go up and down completely randomly.
Pair Corralation between GlobalData PLC and Autins Group
Assuming the 90 days trading horizon GlobalData PLC is expected to generate 0.44 times more return on investment than Autins Group. However, GlobalData PLC is 2.26 times less risky than Autins Group. It trades about -0.14 of its potential returns per unit of risk. Autins Group plc is currently generating about -0.28 per unit of risk. If you would invest 20,200 in GlobalData PLC on September 13, 2024 and sell it today you would lose (1,300) from holding GlobalData PLC or give up 6.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlobalData PLC vs. Autins Group plc
Performance |
| Timeline |
| GlobalData PLC |
| Autins Group plc |
GlobalData PLC and Autins Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalData PLC and Autins Group
The main advantage of trading using opposite GlobalData PLC and Autins Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalData PLC position performs unexpectedly, Autins Group 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 Autins Group will offset losses from the drop in Autins Group's long position.| GlobalData PLC vs. Samsung Electronics Co | GlobalData PLC vs. Samsung Electronics Co | GlobalData PLC vs. Hyundai Motor | GlobalData PLC vs. Toyota Motor Corp |
| Autins Group vs. Fidelity National Information | Autins Group vs. Capital Drilling | Autins Group vs. Gaztransport et Technigaz | Autins Group vs. STMicroelectronics NV |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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