Correlation Between Globalfoundries and Concorde Gaming
Can any of the company-specific risk be diversified away by investing in both Globalfoundries and Concorde Gaming 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 Globalfoundries and Concorde Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalfoundries and Concorde Gaming, you can compare the effects of market volatilities on Globalfoundries and Concorde Gaming 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 Globalfoundries with a short position of Concorde Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and Concorde Gaming.
Diversification Opportunities for Globalfoundries and Concorde Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globalfoundries and Concorde is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries and Concorde Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concorde Gaming and Globalfoundries 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 Globalfoundries are associated (or correlated) with Concorde Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concorde Gaming has no effect on the direction of Globalfoundries i.e., Globalfoundries and Concorde Gaming go up and down completely randomly.
Pair Corralation between Globalfoundries and Concorde Gaming
If you would invest 0.01 in Concorde Gaming on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Concorde Gaming or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globalfoundries vs. Concorde Gaming
Performance |
| Timeline |
| Globalfoundries |
| Concorde Gaming |
Globalfoundries and Concorde Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalfoundries and Concorde Gaming
The main advantage of trading using opposite Globalfoundries and Concorde Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries position performs unexpectedly, Concorde Gaming 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 Concorde Gaming will offset losses from the drop in Concorde Gaming's long position.| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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