Correlation Between Globex Mining and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Globex Mining and PKSHA TECHNOLOGY 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 Globex Mining and PKSHA TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globex Mining Enterprises and PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Globex Mining and PKSHA TECHNOLOGY 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 Globex Mining with a short position of PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globex Mining and PKSHA TECHNOLOGY.
Diversification Opportunities for Globex Mining and PKSHA TECHNOLOGY
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globex and PKSHA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Globex Mining Enterprises and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC and Globex Mining 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 Globex Mining Enterprises are associated (or correlated) with PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Globex Mining i.e., Globex Mining and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Globex Mining and PKSHA TECHNOLOGY
Assuming the 90 days trading horizon Globex Mining Enterprises is expected to generate 0.73 times more return on investment than PKSHA TECHNOLOGY. However, Globex Mining Enterprises is 1.38 times less risky than PKSHA TECHNOLOGY. It trades about 0.54 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about 0.0 per unit of risk. If you would invest 79.00 in Globex Mining Enterprises on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Globex Mining Enterprises or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Globex Mining Enterprises vs. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Globex Mining Enterprises |
| PKSHA TECHNOLOGY INC |
Globex Mining and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globex Mining and PKSHA TECHNOLOGY
The main advantage of trading using opposite Globex Mining and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globex Mining position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| Globex Mining vs. HEALTHSTREAM | Globex Mining vs. SHIP HEALTHCARE HLDGINC | Globex Mining vs. ALEFARM BREWING DK 05 | Globex Mining vs. Hanison Construction Holdings |
| PKSHA TECHNOLOGY vs. Playa Hotels Resorts | PKSHA TECHNOLOGY vs. Wyndham Hotels Resorts | PKSHA TECHNOLOGY vs. Fukuyama Transporting Co | PKSHA TECHNOLOGY vs. Columbia Sportswear |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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