Correlation Between Gigas Hosting and Tander Inversiones
Can any of the company-specific risk be diversified away by investing in both Gigas Hosting and Tander Inversiones 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 Tander Inversiones 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 Tander Inversiones SOCIMI, you can compare the effects of market volatilities on Gigas Hosting and Tander Inversiones 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 Tander Inversiones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigas Hosting and Tander Inversiones.
Diversification Opportunities for Gigas Hosting and Tander Inversiones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gigas and Tander is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gigas Hosting SA and Tander Inversiones SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tander Inversiones SOCIMI 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 Tander Inversiones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tander Inversiones SOCIMI has no effect on the direction of Gigas Hosting i.e., Gigas Hosting and Tander Inversiones go up and down completely randomly.
Pair Corralation between Gigas Hosting and Tander Inversiones
Assuming the 90 days trading horizon Gigas Hosting SA is expected to generate 4.25 times more return on investment than Tander Inversiones. However, Gigas Hosting is 4.25 times more volatile than Tander Inversiones SOCIMI. It trades about 0.01 of its potential returns per unit of risk. Tander Inversiones SOCIMI is currently generating about 0.01 per unit of risk. If you would invest 780.00 in Gigas Hosting SA on September 4, 2024 and sell it today you would earn a total of 15.00 from holding Gigas Hosting SA or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.18% |
| Values | Daily Returns |
Gigas Hosting SA vs. Tander Inversiones SOCIMI
Performance |
| Timeline |
| Gigas Hosting SA |
| Tander Inversiones SOCIMI |
Gigas Hosting and Tander Inversiones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigas Hosting and Tander Inversiones
The main advantage of trading using opposite Gigas Hosting and Tander Inversiones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigas Hosting position performs unexpectedly, Tander Inversiones 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 Tander Inversiones will offset losses from the drop in Tander Inversiones' long position.| Gigas Hosting vs. Metrovacesa SA | Gigas Hosting vs. Endurance Motive SA | Gigas Hosting vs. Elecnor SA | Gigas Hosting vs. Mapfre |
| Tander Inversiones vs. Airbus Group SE | Tander Inversiones vs. Industria de Diseno | Tander Inversiones vs. Vale SA | Tander Inversiones vs. Iberdrola 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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