Correlation Between Global E and Stagwell
Can any of the company-specific risk be diversified away by investing in both Global E and Stagwell 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 Global E and Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Stagwell, you can compare the effects of market volatilities on Global E and Stagwell 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 Global E with a short position of Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Stagwell.
Diversification Opportunities for Global E and Stagwell
Very weak diversification
The 3 months correlation between Global and Stagwell is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell and Global E 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 Global E Online are associated (or correlated) with Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Global E i.e., Global E and Stagwell go up and down completely randomly.
Pair Corralation between Global E and Stagwell
Given the investment horizon of 90 days Global E Online is expected to generate 1.13 times more return on investment than Stagwell. However, Global E is 1.13 times more volatile than Stagwell. It trades about 0.17 of its potential returns per unit of risk. Stagwell is currently generating about 0.06 per unit of risk. If you would invest 3,131 in Global E Online on August 31, 2024 and sell it today you would earn a total of 2,097 from holding Global E Online or generate 66.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global E Online vs. Stagwell
Performance |
| Timeline |
| Global E Online |
| Stagwell |
Global E and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and Stagwell
The main advantage of trading using opposite Global E and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| 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 | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |