Correlation Between Globe Trade and National Retail
Can any of the company-specific risk be diversified away by investing in both Globe Trade and National Retail 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 Globe Trade and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and National Retail Properties, you can compare the effects of market volatilities on Globe Trade and National Retail 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 Globe Trade with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and National Retail.
Diversification Opportunities for Globe Trade and National Retail
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Globe and National is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and Globe Trade 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 Globe Trade Centre are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Globe Trade i.e., Globe Trade and National Retail go up and down completely randomly.
Pair Corralation between Globe Trade and National Retail
If you would invest 4,173 in National Retail Properties on August 31, 2024 and sell it today you would earn a total of 31.00 from holding National Retail Properties or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. National Retail Properties
Performance |
| Timeline |
| Globe Trade Centre |
| National Retail Prop |
Globe Trade and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and National Retail
The main advantage of trading using opposite Globe Trade and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| Globe Trade vs. SIVERS SEMICONDUCTORS AB | Globe Trade vs. Darden Restaurants | Globe Trade vs. Reliance Steel Aluminum | Globe Trade vs. Q2M Managementberatung AG |
| National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |