Correlation Between Globant SA and Gartner
Can any of the company-specific risk be diversified away by investing in both Globant SA and Gartner 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 Globant SA and Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globant SA and Gartner, you can compare the effects of market volatilities on Globant SA and Gartner 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 Globant SA with a short position of Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globant SA and Gartner.
Diversification Opportunities for Globant SA and Gartner
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Globant and Gartner is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Globant SA and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner and Globant SA 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 Globant SA are associated (or correlated) with Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Globant SA i.e., Globant SA and Gartner go up and down completely randomly.
Pair Corralation between Globant SA and Gartner
Given the investment horizon of 90 days Globant SA is expected to generate 1.17 times less return on investment than Gartner. In addition to that, Globant SA is 1.7 times more volatile than Gartner. It trades about 0.03 of its total potential returns per unit of risk. Gartner is currently generating about 0.06 per unit of volatility. If you would invest 35,046 in Gartner on August 24, 2024 and sell it today you would earn a total of 16,878 from holding Gartner or generate 48.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globant SA vs. Gartner
Performance |
| Timeline |
| Globant SA |
| Gartner |
Globant SA and Gartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globant SA and Gartner
The main advantage of trading using opposite Globant SA and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globant SA position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.| Globant SA vs. Accenture plc | Globant SA vs. Concentrix | Globant SA vs. Cognizant Technology Solutions | Globant SA vs. CDW Corp |
| Gartner vs. Concentrix | Gartner vs. Accenture plc | Gartner vs. International Business Machines | Gartner vs. Infosys Ltd ADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |