Correlation Between G2D Investments and Palantir Technologies
Can any of the company-specific risk be diversified away by investing in both G2D Investments and Palantir Technologies 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 G2D Investments and Palantir Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2D Investments and Palantir Technologies, you can compare the effects of market volatilities on G2D Investments and Palantir Technologies 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 G2D Investments with a short position of Palantir Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and Palantir Technologies.
Diversification Opportunities for G2D Investments and Palantir Technologies
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between G2D and Palantir is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding G2D Investments and Palantir Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir Technologies and G2D 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 G2D Investments are associated (or correlated) with Palantir Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Technologies has no effect on the direction of G2D Investments i.e., G2D Investments and Palantir Technologies go up and down completely randomly.
Pair Corralation between G2D Investments and Palantir Technologies
Assuming the 90 days trading horizon G2D Investments is expected to generate 32.35 times less return on investment than Palantir Technologies. But when comparing it to its historical volatility, G2D Investments is 1.23 times less risky than Palantir Technologies. It trades about 0.01 of its potential returns per unit of risk. Palantir Technologies is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 6,000 in Palantir Technologies on September 2, 2024 and sell it today you would earn a total of 7,245 from holding Palantir Technologies or generate 120.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G2D Investments vs. Palantir Technologies
Performance |
| Timeline |
| G2D Investments |
| Palantir Technologies |
G2D Investments and Palantir Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G2D Investments and Palantir Technologies
The main advantage of trading using opposite G2D Investments and Palantir Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments position performs unexpectedly, Palantir Technologies 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 Palantir Technologies will offset losses from the drop in Palantir Technologies' long position.| G2D Investments vs. Deutsche Bank Aktiengesellschaft | G2D Investments vs. Cognizant Technology Solutions | G2D Investments vs. Unity Software | G2D Investments vs. Palantir Technologies |
| Palantir Technologies vs. BTG Pactual Logstica | Palantir Technologies vs. Plano Plano Desenvolvimento | Palantir Technologies vs. Cable One | Palantir Technologies vs. ATMA Participaes SA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |