Correlation Between Gafisa SA and PDG Realty
Can any of the company-specific risk be diversified away by investing in both Gafisa SA and PDG Realty 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 Gafisa SA and PDG Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gafisa SA and PDG Realty SA, you can compare the effects of market volatilities on Gafisa SA and PDG Realty 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 Gafisa SA with a short position of PDG Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gafisa SA and PDG Realty.
Diversification Opportunities for Gafisa SA and PDG Realty
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gafisa and PDG is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gafisa SA and PDG Realty SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDG Realty SA and Gafisa SA 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 Gafisa SA are associated (or correlated) with PDG Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDG Realty SA has no effect on the direction of Gafisa SA i.e., Gafisa SA and PDG Realty go up and down completely randomly.
Pair Corralation between Gafisa SA and PDG Realty
If you would invest 1.00 in PDG Realty SA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding PDG Realty SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gafisa SA vs. PDG Realty SA
Performance |
| Timeline |
| Gafisa SA |
| PDG Realty SA |
Gafisa SA and PDG Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gafisa SA and PDG Realty
The main advantage of trading using opposite Gafisa SA and PDG Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gafisa SA position performs unexpectedly, PDG Realty 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 PDG Realty will offset losses from the drop in PDG Realty's long position.| Gafisa SA vs. Cyrela Brazil Realty | Gafisa SA vs. Rossi Residencial SA | Gafisa SA vs. MRV Engenharia e | Gafisa SA vs. PDG Realty SA |
| PDG Realty vs. Baidu Inc | PDG Realty vs. Deutsche Bank Aktiengesellschaft | PDG Realty vs. HSBC Holdings plc | PDG Realty vs. The Bank of |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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