Correlation Between Distoken Acquisition and Graf Global
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition and Graf Global 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 Distoken Acquisition and Graf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and Graf Global Corp, you can compare the effects of market volatilities on Distoken Acquisition and Graf Global 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 Distoken Acquisition with a short position of Graf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and Graf Global.
Diversification Opportunities for Distoken Acquisition and Graf Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Distoken and Graf is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and Graf Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Global Corp and Distoken Acquisition 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 Distoken Acquisition are associated (or correlated) with Graf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Global Corp has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and Graf Global go up and down completely randomly.
Pair Corralation between Distoken Acquisition and Graf Global
Given the investment horizon of 90 days Distoken Acquisition is expected to generate 1.38 times less return on investment than Graf Global. In addition to that, Distoken Acquisition is 41.85 times more volatile than Graf Global Corp. It trades about 0.01 of its total potential returns per unit of risk. Graf Global Corp is currently generating about 0.3 per unit of volatility. If you would invest 1,011 in Graf Global Corp on November 18, 2024 and sell it today you would earn a total of 3.00 from holding Graf Global Corp or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Distoken Acquisition vs. Graf Global Corp
Performance |
| Timeline |
| Distoken Acquisition |
| Graf Global Corp |
Distoken Acquisition and Graf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and Graf Global
The main advantage of trading using opposite Distoken Acquisition and Graf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition position performs unexpectedly, Graf Global 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 Graf Global will offset losses from the drop in Graf Global's long position.| Distoken Acquisition vs. Topbuild Corp | Distoken Acquisition vs. VF Corporation | Distoken Acquisition vs. Columbia Sportswear | Distoken Acquisition vs. Cintas |
| Graf Global vs. Celsius Holdings | Graf Global vs. Summit Materials | Graf Global vs. Diamond Estates Wines | Graf Global vs. MGP Ingredients |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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