Correlation Between G2D Investments and CM Hospitalar
Can any of the company-specific risk be diversified away by investing in both G2D Investments and CM Hospitalar 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 CM Hospitalar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2D Investments and CM Hospitalar SA, you can compare the effects of market volatilities on G2D Investments and CM Hospitalar 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 CM Hospitalar. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and CM Hospitalar.
Diversification Opportunities for G2D Investments and CM Hospitalar
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between G2D and VVEO3 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding G2D Investments and CM Hospitalar SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM Hospitalar SA 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 CM Hospitalar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM Hospitalar SA has no effect on the direction of G2D Investments i.e., G2D Investments and CM Hospitalar go up and down completely randomly.
Pair Corralation between G2D Investments and CM Hospitalar
Assuming the 90 days trading horizon G2D Investments is expected to under-perform the CM Hospitalar. But the stock apears to be less risky and, when comparing its historical volatility, G2D Investments is 3.17 times less risky than CM Hospitalar. The stock trades about -0.11 of its potential returns per unit of risk. The CM Hospitalar SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 207.00 in CM Hospitalar SA on September 2, 2024 and sell it today you would lose (9.00) from holding CM Hospitalar SA or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G2D Investments vs. CM Hospitalar SA
Performance |
| Timeline |
| G2D Investments |
| CM Hospitalar SA |
G2D Investments and CM Hospitalar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G2D Investments and CM Hospitalar
The main advantage of trading using opposite G2D Investments and CM Hospitalar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments position performs unexpectedly, CM Hospitalar 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 CM Hospitalar will offset losses from the drop in CM Hospitalar's long position.| G2D Investments vs. Deutsche Bank Aktiengesellschaft | G2D Investments vs. Cognizant Technology Solutions | G2D Investments vs. Unity Software | G2D Investments vs. Palantir Technologies |
| CM Hospitalar vs. Profarma Distribuidora de | CM Hospitalar vs. Fras le SA | CM Hospitalar vs. Western Digital | CM Hospitalar vs. Energisa 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |