Correlation Between GRENKELEASING and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING and FUYO GENERAL 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 GRENKELEASING and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and FUYO GENERAL LEASE, you can compare the effects of market volatilities on GRENKELEASING and FUYO GENERAL 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 GRENKELEASING with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and FUYO GENERAL.
Diversification Opportunities for GRENKELEASING and FUYO GENERAL
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRENKELEASING and FUYO is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and GRENKELEASING 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 GRENKELEASING Dusseldorf are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of GRENKELEASING i.e., GRENKELEASING and FUYO GENERAL go up and down completely randomly.
Pair Corralation between GRENKELEASING and FUYO GENERAL
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 1.52 times more return on investment than FUYO GENERAL. However, GRENKELEASING is 1.52 times more volatile than FUYO GENERAL LEASE. It trades about 0.28 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.01 per unit of risk. If you would invest 1,538 in GRENKELEASING Dusseldorf on October 18, 2024 and sell it today you would earn a total of 158.00 from holding GRENKELEASING Dusseldorf or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| GRENKELEASING Duss |
| FUYO GENERAL LEASE |
GRENKELEASING and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING and FUYO GENERAL
The main advantage of trading using opposite GRENKELEASING and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| GRENKELEASING vs. Seven West Media | GRENKELEASING vs. HK Electric Investments | GRENKELEASING vs. Chuangs China Investments | GRENKELEASING vs. DIVERSIFIED ROYALTY |
| FUYO GENERAL vs. Eurasia Mining Plc | FUYO GENERAL vs. GRENKELEASING Dusseldorf | FUYO GENERAL vs. Sixt Leasing SE | FUYO GENERAL vs. Perseus Mining Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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