Correlation Between Global Data and Argo Investments
Can any of the company-specific risk be diversified away by investing in both Global Data and Argo Investments 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 Global Data and Argo Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Data Centre and Argo Investments, you can compare the effects of market volatilities on Global Data and Argo Investments 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 Global Data with a short position of Argo Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Data and Argo Investments.
Diversification Opportunities for Global Data and Argo Investments
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Argo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Global Data Centre and Argo Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Investments and Global Data 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 Global Data Centre are associated (or correlated) with Argo Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Investments has no effect on the direction of Global Data i.e., Global Data and Argo Investments go up and down completely randomly.
Pair Corralation between Global Data and Argo Investments
Assuming the 90 days trading horizon Global Data Centre is expected to under-perform the Argo Investments. In addition to that, Global Data is 10.9 times more volatile than Argo Investments. It trades about -0.03 of its total potential returns per unit of risk. Argo Investments is currently generating about 0.07 per unit of volatility. If you would invest 861.00 in Argo Investments on November 3, 2024 and sell it today you would earn a total of 41.00 from holding Argo Investments or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Data Centre vs. Argo Investments
Performance |
| Timeline |
| Global Data Centre |
| Argo Investments |
Global Data and Argo Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Data and Argo Investments
The main advantage of trading using opposite Global Data and Argo Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Data position performs unexpectedly, Argo Investments 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 Argo Investments will offset losses from the drop in Argo Investments' long position.| Global Data vs. Ambertech | Global Data vs. Mach7 Technologies | Global Data vs. Fisher Paykel Healthcare | Global Data vs. Genetic Technologies |
| Argo Investments vs. Aneka Tambang Tbk | Argo Investments vs. BHP Group Limited | Argo Investments vs. Ecofibre | Argo Investments vs. iShares Global Healthcare |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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