Correlation Between GuocoLand and Pure Storage
Can any of the company-specific risk be diversified away by investing in both GuocoLand and Pure Storage 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 GuocoLand and Pure Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GuocoLand Limited and Pure Storage, you can compare the effects of market volatilities on GuocoLand and Pure Storage 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 GuocoLand with a short position of Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuocoLand and Pure Storage.
Diversification Opportunities for GuocoLand and Pure Storage
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GuocoLand and Pure is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GuocoLand Limited and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage and GuocoLand 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 GuocoLand Limited are associated (or correlated) with Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of GuocoLand i.e., GuocoLand and Pure Storage go up and down completely randomly.
Pair Corralation between GuocoLand and Pure Storage
Assuming the 90 days trading horizon GuocoLand Limited is expected to under-perform the Pure Storage. But the stock apears to be less risky and, when comparing its historical volatility, GuocoLand Limited is 29.22 times less risky than Pure Storage. The stock trades about -0.21 of its potential returns per unit of risk. The Pure Storage is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,969 in Pure Storage on September 12, 2024 and sell it today you would earn a total of 926.00 from holding Pure Storage or generate 18.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuocoLand Limited vs. Pure Storage
Performance |
| Timeline |
| GuocoLand Limited |
| Pure Storage |
GuocoLand and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuocoLand and Pure Storage
The main advantage of trading using opposite GuocoLand and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuocoLand position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| GuocoLand vs. OPEN HOUSE GROUP | GuocoLand vs. Superior Plus Corp | GuocoLand vs. SIVERS SEMICONDUCTORS AB | GuocoLand vs. CHINA HUARONG ENERHD 50 |
| Pure Storage vs. ALBIS LEASING AG | Pure Storage vs. Harmony Gold Mining | Pure Storage vs. Sixt Leasing SE | Pure Storage vs. COPLAND ROAD CAPITAL |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |