Correlation Between Grenke AG and CARSALESCOM
Can any of the company-specific risk be diversified away by investing in both Grenke AG and CARSALESCOM 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 Grenke AG and CARSALESCOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grenke AG and CARSALESCOM, you can compare the effects of market volatilities on Grenke AG and CARSALESCOM 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 Grenke AG with a short position of CARSALESCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grenke AG and CARSALESCOM.
Diversification Opportunities for Grenke AG and CARSALESCOM
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grenke and CARSALESCOM is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Grenke AG and CARSALESCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARSALESCOM and Grenke AG 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 Grenke AG are associated (or correlated) with CARSALESCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARSALESCOM has no effect on the direction of Grenke AG i.e., Grenke AG and CARSALESCOM go up and down completely randomly.
Pair Corralation between Grenke AG and CARSALESCOM
Assuming the 90 days trading horizon Grenke AG is expected to under-perform the CARSALESCOM. In addition to that, Grenke AG is 1.2 times more volatile than CARSALESCOM. It trades about -0.2 of its total potential returns per unit of risk. CARSALESCOM is currently generating about -0.11 per unit of volatility. If you would invest 2,460 in CARSALESCOM on September 13, 2024 and sell it today you would lose (100.00) from holding CARSALESCOM or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grenke AG vs. CARSALESCOM
Performance |
| Timeline |
| Grenke AG |
| CARSALESCOM |
Grenke AG and CARSALESCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grenke AG and CARSALESCOM
The main advantage of trading using opposite Grenke AG and CARSALESCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grenke AG position performs unexpectedly, CARSALESCOM 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 CARSALESCOM will offset losses from the drop in CARSALESCOM's long position.| Grenke AG vs. Bumrungrad Hospital Public | Grenke AG vs. ATRYS HEALTH SA | Grenke AG vs. Spirent Communications plc | Grenke AG vs. EHEALTH |
| CARSALESCOM vs. PICKN PAY STORES | CARSALESCOM vs. MI Homes | CARSALESCOM vs. bet at home AG | CARSALESCOM vs. Caseys General Stores |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |