Correlation Between GDI Property and Eureka Group
Can any of the company-specific risk be diversified away by investing in both GDI Property and Eureka 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 Eureka 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 Eureka Group Holdings, you can compare the effects of market volatilities on GDI Property and Eureka 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 Eureka Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Property and Eureka Group.
Diversification Opportunities for GDI Property and Eureka Group
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GDI and Eureka is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GDI Property Group and Eureka Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eureka Group Holdings 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 Eureka Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eureka Group Holdings has no effect on the direction of GDI Property i.e., GDI Property and Eureka Group go up and down completely randomly.
Pair Corralation between GDI Property and Eureka Group
Assuming the 90 days trading horizon GDI Property is expected to generate 3.51 times less return on investment than Eureka Group. In addition to that, GDI Property is 1.14 times more volatile than Eureka Group Holdings. It trades about 0.02 of its total potential returns per unit of risk. Eureka Group Holdings is currently generating about 0.07 per unit of volatility. If you would invest 52.00 in Eureka Group Holdings on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Eureka Group Holdings or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
GDI Property Group vs. Eureka Group Holdings
Performance |
| Timeline |
| GDI Property Group |
| Eureka Group Holdings |
GDI Property and Eureka Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDI Property and Eureka Group
The main advantage of trading using opposite GDI Property and Eureka Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDI Property position performs unexpectedly, Eureka 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 Eureka Group will offset losses from the drop in Eureka Group's long position.| GDI Property vs. Charter Hall Retail | GDI Property vs. Ecofibre | GDI Property vs. iShares Global Healthcare | GDI Property vs. Adriatic Metals Plc |
| Eureka Group vs. Scentre Group | Eureka Group vs. Vicinity Centres Re | Eureka Group vs. Charter Hall Retail | Eureka Group vs. Cromwell Property Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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