Correlation Between GuocoLand and NEW WORLD
Can any of the company-specific risk be diversified away by investing in both GuocoLand and NEW WORLD 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 NEW WORLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GuocoLand Limited and NEW WORLD DEVCO, you can compare the effects of market volatilities on GuocoLand and NEW WORLD 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 NEW WORLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuocoLand and NEW WORLD.
Diversification Opportunities for GuocoLand and NEW WORLD
Pay attention - limited upside
The 3 months correlation between GuocoLand and NEW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GuocoLand Limited and NEW WORLD DEVCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW WORLD DEVCO 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 NEW WORLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW WORLD DEVCO has no effect on the direction of GuocoLand i.e., GuocoLand and NEW WORLD go up and down completely randomly.
Pair Corralation between GuocoLand and NEW WORLD
If you would invest 0.00 in GuocoLand Limited on October 13, 2024 and sell it today you would earn a total of 0.00 from holding GuocoLand Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.69% |
| Values | Daily Returns |
GuocoLand Limited vs. NEW WORLD DEVCO
Performance |
| Timeline |
| GuocoLand Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| NEW WORLD DEVCO |
GuocoLand and NEW WORLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuocoLand and NEW WORLD
The main advantage of trading using opposite GuocoLand and NEW WORLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuocoLand position performs unexpectedly, NEW WORLD 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 NEW WORLD will offset losses from the drop in NEW WORLD's long position.| GuocoLand vs. Webster Financial | GuocoLand vs. Sun Life Financial | GuocoLand vs. SUN LIFE FINANCIAL | GuocoLand vs. UNIQA INSURANCE GR |
| NEW WORLD vs. AAC TECHNOLOGHLDGADR | NEW WORLD vs. Minerals Technologies | NEW WORLD vs. Digilife Technologies Limited | NEW WORLD vs. The Japan Steel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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