Correlation Between Gap, and Triumph
Can any of the company-specific risk be diversified away by investing in both Gap, and Triumph 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 Gap, and Triumph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Triumph Group, you can compare the effects of market volatilities on Gap, and Triumph 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 Gap, with a short position of Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Triumph.
Diversification Opportunities for Gap, and Triumph
Pay attention - limited upside
The 3 months correlation between Gap, and Triumph is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Group and Gap, 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 The Gap, are associated (or correlated) with Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of Gap, i.e., Gap, and Triumph go up and down completely randomly.
Pair Corralation between Gap, and Triumph
If you would invest 879.00 in The Gap, on September 12, 2024 and sell it today you would earn a total of 1,655 from holding The Gap, or generate 188.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.28% |
| Values | Daily Returns |
The Gap, vs. Triumph Group
Performance |
| Timeline |
| Gap, |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gap, and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Triumph
The main advantage of trading using opposite Gap, and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph's long position.The idea behind The Gap, and Triumph Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Triumph vs. China Aircraft Leasing | Triumph vs. Anheuser Busch Inbev | Triumph vs. Hertz Global Holdings | Triumph vs. Thai Beverage PCL |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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