Correlation Between Gigas Hosting and Elaia Investment
Can any of the company-specific risk be diversified away by investing in both Gigas Hosting and Elaia Investment 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 Gigas Hosting and Elaia Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigas Hosting SA and Elaia Investment Spain, you can compare the effects of market volatilities on Gigas Hosting and Elaia Investment 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 Gigas Hosting with a short position of Elaia Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigas Hosting and Elaia Investment.
Diversification Opportunities for Gigas Hosting and Elaia Investment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gigas and Elaia is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gigas Hosting SA and Elaia Investment Spain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elaia Investment Spain and Gigas Hosting 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 Gigas Hosting SA are associated (or correlated) with Elaia Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elaia Investment Spain has no effect on the direction of Gigas Hosting i.e., Gigas Hosting and Elaia Investment go up and down completely randomly.
Pair Corralation between Gigas Hosting and Elaia Investment
Assuming the 90 days trading horizon Gigas Hosting SA is expected to generate 0.47 times more return on investment than Elaia Investment. However, Gigas Hosting SA is 2.12 times less risky than Elaia Investment. It trades about 0.03 of its potential returns per unit of risk. Elaia Investment Spain is currently generating about -0.01 per unit of risk. If you would invest 704.00 in Gigas Hosting SA on September 12, 2024 and sell it today you would earn a total of 66.00 from holding Gigas Hosting SA or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Gigas Hosting SA vs. Elaia Investment Spain
Performance |
| Timeline |
| Gigas Hosting SA |
| Elaia Investment Spain |
Gigas Hosting and Elaia Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigas Hosting and Elaia Investment
The main advantage of trading using opposite Gigas Hosting and Elaia Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigas Hosting position performs unexpectedly, Elaia Investment 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 Elaia Investment will offset losses from the drop in Elaia Investment's long position.| Gigas Hosting vs. Elaia Investment Spain | Gigas Hosting vs. Labiana Health SA | Gigas Hosting vs. Inhome Prime Properties | Gigas Hosting vs. Caixabank SA |
| Elaia Investment vs. Castellana Properties Socimi | Elaia Investment vs. All Iron Re | Elaia Investment vs. Metrovacesa SA | Elaia Investment vs. Elecnor SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |