Correlation Between GigaMedia and Robinhood Markets
Can any of the company-specific risk be diversified away by investing in both GigaMedia and Robinhood Markets 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 GigaMedia and Robinhood Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and Robinhood Markets, you can compare the effects of market volatilities on GigaMedia and Robinhood Markets 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 GigaMedia with a short position of Robinhood Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Robinhood Markets.
Diversification Opportunities for GigaMedia and Robinhood Markets
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GigaMedia and Robinhood is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and Robinhood Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinhood Markets and GigaMedia 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 GigaMedia are associated (or correlated) with Robinhood Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinhood Markets has no effect on the direction of GigaMedia i.e., GigaMedia and Robinhood Markets go up and down completely randomly.
Pair Corralation between GigaMedia and Robinhood Markets
Assuming the 90 days trading horizon GigaMedia is expected to generate 9.81 times less return on investment than Robinhood Markets. But when comparing it to its historical volatility, GigaMedia is 2.18 times less risky than Robinhood Markets. It trades about 0.02 of its potential returns per unit of risk. Robinhood Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 990.00 in Robinhood Markets on October 25, 2024 and sell it today you would earn a total of 3,827 from holding Robinhood Markets or generate 386.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GigaMedia vs. Robinhood Markets
Performance |
| Timeline |
| GigaMedia |
| Robinhood Markets |
GigaMedia and Robinhood Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Robinhood Markets
The main advantage of trading using opposite GigaMedia and Robinhood Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia position performs unexpectedly, Robinhood Markets 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 Robinhood Markets will offset losses from the drop in Robinhood Markets' long position.| GigaMedia vs. MAGNUM MINING EXP | GigaMedia vs. Park Hotels Resorts | GigaMedia vs. Perseus Mining Limited | GigaMedia vs. Harmony Gold Mining |
| Robinhood Markets vs. Aristocrat Leisure Limited | Robinhood Markets vs. TRAVEL LEISURE DL 01 | Robinhood Markets vs. PRECISION DRILLING P | Robinhood Markets vs. CanSino Biologics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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