Correlation Between Gap, and PENSKE
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By analyzing existing cross correlation between The Gap, and PENSKE 57 01 FEB 28, you can compare the effects of market volatilities on Gap, and PENSKE 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 PENSKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and PENSKE.
Diversification Opportunities for Gap, and PENSKE
Very good diversification
The 3 months correlation between Gap, and PENSKE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and PENSKE 57 01 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENSKE 57 01 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 PENSKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENSKE 57 01 has no effect on the direction of Gap, i.e., Gap, and PENSKE go up and down completely randomly.
Pair Corralation between Gap, and PENSKE
Considering the 90-day investment horizon The Gap, is expected to generate 8.69 times more return on investment than PENSKE. However, Gap, is 8.69 times more volatile than PENSKE 57 01 FEB 28. It trades about 0.13 of its potential returns per unit of risk. PENSKE 57 01 FEB 28 is currently generating about -0.17 per unit of risk. If you would invest 2,210 in The Gap, on September 15, 2024 and sell it today you would earn a total of 219.00 from holding The Gap, or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
The Gap, vs. PENSKE 57 01 FEB 28
Performance |
| Timeline |
| Gap, |
| PENSKE 57 01 |
Gap, and PENSKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and PENSKE
The main advantage of trading using opposite Gap, and PENSKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, PENSKE 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 PENSKE will offset losses from the drop in PENSKE's long position.The idea behind The Gap, and PENSKE 57 01 FEB 28 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.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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