Correlation Between GDI Integrated and Flow Beverage
Can any of the company-specific risk be diversified away by investing in both GDI Integrated and Flow Beverage 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 Integrated and Flow Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDI Integrated and Flow Beverage Corp, you can compare the effects of market volatilities on GDI Integrated and Flow Beverage 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 Integrated with a short position of Flow Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Integrated and Flow Beverage.
Diversification Opportunities for GDI Integrated and Flow Beverage
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GDI and Flow is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GDI Integrated and Flow Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Beverage Corp and GDI Integrated 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 Integrated are associated (or correlated) with Flow Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Beverage Corp has no effect on the direction of GDI Integrated i.e., GDI Integrated and Flow Beverage go up and down completely randomly.
Pair Corralation between GDI Integrated and Flow Beverage
Assuming the 90 days trading horizon GDI Integrated is expected to generate 0.23 times more return on investment than Flow Beverage. However, GDI Integrated is 4.32 times less risky than Flow Beverage. It trades about 0.18 of its potential returns per unit of risk. Flow Beverage Corp is currently generating about -0.09 per unit of risk. If you would invest 3,497 in GDI Integrated on September 18, 2024 and sell it today you would earn a total of 160.00 from holding GDI Integrated or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GDI Integrated vs. Flow Beverage Corp
Performance |
| Timeline |
| GDI Integrated |
| Flow Beverage Corp |
GDI Integrated and Flow Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDI Integrated and Flow Beverage
The main advantage of trading using opposite GDI Integrated and Flow Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDI Integrated position performs unexpectedly, Flow Beverage 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 Flow Beverage will offset losses from the drop in Flow Beverage's long position.| GDI Integrated vs. Flow Beverage Corp | GDI Integrated vs. iShares Canadian HYBrid | GDI Integrated vs. Altagas Cum Red | GDI Integrated vs. European Residential Real |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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