Correlation Between Gannett and UNITED
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By analyzing existing cross correlation between Gannett Co and UNITED PARCEL SVC, you can compare the effects of market volatilities on Gannett and UNITED 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 Gannett with a short position of UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gannett and UNITED.
Diversification Opportunities for Gannett and UNITED
Very good diversification
The 3 months correlation between Gannett and UNITED is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Gannett Co and UNITED PARCEL SVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SVC and Gannett 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 Gannett Co are associated (or correlated) with UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SVC has no effect on the direction of Gannett i.e., Gannett and UNITED go up and down completely randomly.
Pair Corralation between Gannett and UNITED
Considering the 90-day investment horizon Gannett Co is expected to generate 5.16 times more return on investment than UNITED. However, Gannett is 5.16 times more volatile than UNITED PARCEL SVC. It trades about 0.09 of its potential returns per unit of risk. UNITED PARCEL SVC is currently generating about -0.01 per unit of risk. If you would invest 220.00 in Gannett Co on November 4, 2024 and sell it today you would earn a total of 232.00 from holding Gannett Co or generate 105.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.5% |
| Values | Daily Returns |
Gannett Co vs. UNITED PARCEL SVC
Performance |
| Timeline |
| Gannett |
| UNITED PARCEL SVC |
Gannett and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gannett and UNITED
The main advantage of trading using opposite Gannett and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gannett position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| Gannett vs. Dallasnews Corp | Gannett vs. Scholastic | Gannett vs. Pearson PLC ADR | Gannett vs. New York Times |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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