Correlation Between Globalink Investment and Black Hawk
Can any of the company-specific risk be diversified away by investing in both Globalink Investment and Black Hawk 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 Globalink Investment and Black Hawk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalink Investment and Black Hawk Acquisition, you can compare the effects of market volatilities on Globalink Investment and Black Hawk 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 Globalink Investment with a short position of Black Hawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalink Investment and Black Hawk.
Diversification Opportunities for Globalink Investment and Black Hawk
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globalink and Black is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Globalink Investment and Black Hawk Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Hawk Acquisition and Globalink Investment 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 Globalink Investment are associated (or correlated) with Black Hawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Hawk Acquisition has no effect on the direction of Globalink Investment i.e., Globalink Investment and Black Hawk go up and down completely randomly.
Pair Corralation between Globalink Investment and Black Hawk
Given the investment horizon of 90 days Globalink Investment is expected to generate 28.5 times less return on investment than Black Hawk. But when comparing it to its historical volatility, Globalink Investment is 6.54 times less risky than Black Hawk. It trades about 0.0 of its potential returns per unit of risk. Black Hawk Acquisition is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,050 in Black Hawk Acquisition on August 31, 2024 and sell it today you would lose (1.00) from holding Black Hawk Acquisition or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globalink Investment vs. Black Hawk Acquisition
Performance |
| Timeline |
| Globalink Investment |
| Black Hawk Acquisition |
Globalink Investment and Black Hawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalink Investment and Black Hawk
The main advantage of trading using opposite Globalink Investment and Black Hawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalink Investment position performs unexpectedly, Black Hawk 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 Black Hawk will offset losses from the drop in Black Hawk's long position.| Globalink Investment vs. Healthcare AI Acquisition | Globalink Investment vs. Metal Sky Star | Globalink Investment vs. Target Global Acquisition |
| Black Hawk vs. Playtika Holding Corp | Black Hawk vs. ScanSource | Black Hawk vs. Uber Technologies | Black Hawk vs. Senmiao Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |