Correlation Between Gamma Communications and Thungela Resources
Can any of the company-specific risk be diversified away by investing in both Gamma Communications and Thungela Resources 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 Gamma Communications and Thungela Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamma Communications PLC and Thungela Resources Limited, you can compare the effects of market volatilities on Gamma Communications and Thungela Resources 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 Gamma Communications with a short position of Thungela Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamma Communications and Thungela Resources.
Diversification Opportunities for Gamma Communications and Thungela Resources
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gamma and Thungela is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Gamma Communications PLC and Thungela Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thungela Resources and Gamma Communications 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 Gamma Communications PLC are associated (or correlated) with Thungela Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thungela Resources has no effect on the direction of Gamma Communications i.e., Gamma Communications and Thungela Resources go up and down completely randomly.
Pair Corralation between Gamma Communications and Thungela Resources
Assuming the 90 days trading horizon Gamma Communications PLC is expected to generate 0.35 times more return on investment than Thungela Resources. However, Gamma Communications PLC is 2.87 times less risky than Thungela Resources. It trades about 0.07 of its potential returns per unit of risk. Thungela Resources Limited is currently generating about -0.01 per unit of risk. If you would invest 102,177 in Gamma Communications PLC on September 12, 2024 and sell it today you would earn a total of 59,823 from holding Gamma Communications PLC or generate 58.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Gamma Communications PLC vs. Thungela Resources Limited
Performance |
| Timeline |
| Gamma Communications PLC |
| Thungela Resources |
Gamma Communications and Thungela Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamma Communications and Thungela Resources
The main advantage of trading using opposite Gamma Communications and Thungela Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamma Communications position performs unexpectedly, Thungela Resources 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 Thungela Resources will offset losses from the drop in Thungela Resources' long position.| Gamma Communications vs. Catalyst Media Group | Gamma Communications vs. CATLIN GROUP | Gamma Communications vs. Tamburi Investment Partners | Gamma Communications vs. Magnora ASA |
| Thungela Resources vs. Silvercorp Metals | Thungela Resources vs. Lundin Mining Corp | Thungela Resources vs. Blackrock World Mining | Thungela Resources vs. Summit Materials Cl |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |