Correlation Between Flagship Investments and GDI Property
Can any of the company-specific risk be diversified away by investing in both Flagship Investments and GDI Property 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 Flagship Investments and GDI Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagship Investments and GDI Property Group, you can compare the effects of market volatilities on Flagship Investments and GDI Property 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 Flagship Investments with a short position of GDI Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagship Investments and GDI Property.
Diversification Opportunities for Flagship Investments and GDI Property
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flagship and GDI is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Flagship Investments and GDI Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDI Property Group and Flagship Investments 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 Flagship Investments are associated (or correlated) with GDI Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDI Property Group has no effect on the direction of Flagship Investments i.e., Flagship Investments and GDI Property go up and down completely randomly.
Pair Corralation between Flagship Investments and GDI Property
Assuming the 90 days trading horizon Flagship Investments is expected to generate 0.78 times more return on investment than GDI Property. However, Flagship Investments is 1.28 times less risky than GDI Property. It trades about 0.09 of its potential returns per unit of risk. GDI Property Group is currently generating about 0.0 per unit of risk. If you would invest 185.00 in Flagship Investments on September 3, 2024 and sell it today you would earn a total of 34.00 from holding Flagship Investments or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flagship Investments vs. GDI Property Group
Performance |
| Timeline |
| Flagship Investments |
| GDI Property Group |
Flagship Investments and GDI Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagship Investments and GDI Property
The main advantage of trading using opposite Flagship Investments and GDI Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagship Investments position performs unexpectedly, GDI Property 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 GDI Property will offset losses from the drop in GDI Property's long position.| Flagship Investments vs. Aurelia Metals | Flagship Investments vs. Aeon Metals | Flagship Investments vs. Cleanaway Waste Management | Flagship Investments vs. Strickland Metals |
| GDI Property vs. Alto Metals | GDI Property vs. Macquarie Technology Group | GDI Property vs. Group 6 Metals | GDI Property vs. Ainsworth Game Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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