Correlation Between GDI Property and Aspen Group
Can any of the company-specific risk be diversified away by investing in both GDI Property and Aspen Group 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 GDI Property and Aspen Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDI Property Group and Aspen Group Unit, you can compare the effects of market volatilities on GDI Property and Aspen Group 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 GDI Property with a short position of Aspen Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Property and Aspen Group.
Diversification Opportunities for GDI Property and Aspen Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GDI and Aspen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding GDI Property Group and Aspen Group Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Group Unit and GDI Property 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 GDI Property Group are associated (or correlated) with Aspen Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Group Unit has no effect on the direction of GDI Property i.e., GDI Property and Aspen Group go up and down completely randomly.
Pair Corralation between GDI Property and Aspen Group
Assuming the 90 days trading horizon GDI Property Group is expected to under-perform the Aspen Group. But the stock apears to be less risky and, when comparing its historical volatility, GDI Property Group is 2.29 times less risky than Aspen Group. The stock trades about -0.11 of its potential returns per unit of risk. The Aspen Group Unit is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 215.00 in Aspen Group Unit on September 2, 2024 and sell it today you would earn a total of 40.00 from holding Aspen Group Unit or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GDI Property Group vs. Aspen Group Unit
Performance |
| Timeline |
| GDI Property Group |
| Aspen Group Unit |
GDI Property and Aspen Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDI Property and Aspen Group
The main advantage of trading using opposite GDI Property and Aspen Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDI Property position performs unexpectedly, Aspen Group 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 Aspen Group will offset losses from the drop in Aspen Group's long position.| GDI Property vs. Auctus Alternative Investments | GDI Property vs. Clime Investment Management | GDI Property vs. Flagship Investments | GDI Property vs. Navigator Global Investments |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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