Correlation Between Global Star and Haemonetics
Can any of the company-specific risk be diversified away by investing in both Global Star and Haemonetics 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 Star and Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Star Acquisition and Haemonetics, you can compare the effects of market volatilities on Global Star and Haemonetics 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 Star with a short position of Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Star and Haemonetics.
Diversification Opportunities for Global Star and Haemonetics
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Haemonetics is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Global Star Acquisition and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics and Global Star 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 Star Acquisition are associated (or correlated) with Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of Global Star i.e., Global Star and Haemonetics go up and down completely randomly.
Pair Corralation between Global Star and Haemonetics
Assuming the 90 days horizon Global Star Acquisition is expected to generate 1.13 times more return on investment than Haemonetics. However, Global Star is 1.13 times more volatile than Haemonetics. It trades about 0.19 of its potential returns per unit of risk. Haemonetics is currently generating about -0.27 per unit of risk. If you would invest 1,196 in Global Star Acquisition on November 9, 2024 and sell it today you would earn a total of 181.00 from holding Global Star Acquisition or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Star Acquisition vs. Haemonetics
Performance |
| Timeline |
| Global Star Acquisition |
| Haemonetics |
Global Star and Haemonetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Star and Haemonetics
The main advantage of trading using opposite Global Star and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Star position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.| Global Star vs. Vita Coco | Global Star vs. SNDL Inc | Global Star vs. Anheuser Busch Inbev | Global Star vs. ScanSource |
| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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