Correlation Between GOLD ROAD and Freenet AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between GOLD ROAD RES and freenet AG, you can compare the effects of market volatilities on GOLD ROAD and Freenet AG 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 GOLD ROAD with a short position of Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLD ROAD and Freenet AG.
Diversification Opportunities for GOLD ROAD and Freenet AG
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GOLD and Freenet is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GOLD ROAD RES and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG and GOLD ROAD 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 GOLD ROAD RES are associated (or correlated) with Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of GOLD ROAD i.e., GOLD ROAD and Freenet AG go up and down completely randomly.
Pair Corralation between GOLD ROAD and Freenet AG
Assuming the 90 days trading horizon GOLD ROAD is expected to generate 1.88 times less return on investment than Freenet AG. In addition to that, GOLD ROAD is 2.63 times more volatile than freenet AG. It trades about 0.02 of its total potential returns per unit of risk. freenet AG is currently generating about 0.1 per unit of volatility. If you would invest 1,738 in freenet AG on September 3, 2024 and sell it today you would earn a total of 1,188 from holding freenet AG or generate 68.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOLD ROAD RES vs. freenet AG
Performance |
| Timeline |
| GOLD ROAD RES |
| freenet AG |
GOLD ROAD and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLD ROAD and Freenet AG
The main advantage of trading using opposite GOLD ROAD and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLD ROAD position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG's long position.The idea behind GOLD ROAD RES and freenet AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Freenet AG vs. CAL MAINE FOODS | Freenet AG vs. TYSON FOODS A | Freenet AG vs. LIFEWAY FOODS | Freenet AG vs. GOLD ROAD RES |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |