Correlation Between G Capital and E For
Can any of the company-specific risk be diversified away by investing in both G Capital and E For 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 G Capital and E For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Capital Public and E for L, you can compare the effects of market volatilities on G Capital and E For 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 G Capital with a short position of E For. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and E For.
Diversification Opportunities for G Capital and E For
Very good diversification
The 3 months correlation between GCAP and EFORL is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and E for L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E for L and G Capital 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 G Capital Public are associated (or correlated) with E For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E for L has no effect on the direction of G Capital i.e., G Capital and E For go up and down completely randomly.
Pair Corralation between G Capital and E For
Assuming the 90 days trading horizon G Capital Public is expected to under-perform the E For. But the stock apears to be less risky and, when comparing its historical volatility, G Capital Public is 1.82 times less risky than E For. The stock trades about -0.3 of its potential returns per unit of risk. The E for L is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 13.00 in E for L on August 25, 2024 and sell it today you would earn a total of 15.00 from holding E for L or generate 115.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Capital Public vs. E for L
Performance |
| Timeline |
| G Capital Public |
| E for L |
G Capital and E For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Capital and E For
The main advantage of trading using opposite G Capital and E For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Capital position performs unexpectedly, E For 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 E For will offset losses from the drop in E For's long position.| G Capital vs. Amanah Leasing Public | G Capital vs. Muangthai Capital Public | G Capital vs. Infraset Public | G Capital vs. JMT Network Services |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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