Correlation Between Global Star and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Global Star and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on Global Star and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Star and SCOR PK.
Diversification Opportunities for Global Star and SCOR PK
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and SCOR is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Global Star Acquisition, and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Global Star i.e., Global Star and SCOR PK go up and down completely randomly.
Pair Corralation between Global Star and SCOR PK
Assuming the 90 days horizon Global Star Acquisition, is expected to generate 6.66 times more return on investment than SCOR PK. However, Global Star is 6.66 times more volatile than SCOR PK. It trades about 0.4 of its potential returns per unit of risk. SCOR PK is currently generating about -0.02 per unit of risk. If you would invest 1.00 in Global Star Acquisition, on October 9, 2024 and sell it today you would earn a total of 2.00 from holding Global Star Acquisition, or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Global Star Acquisition, vs. SCOR PK
Performance |
| Timeline |
| Global Star Acquisition, |
| SCOR PK |
Global Star and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Star and SCOR PK
The main advantage of trading using opposite Global Star and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Star position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Global Star vs. KKR Co LP | Global Star vs. Blackstone Group | Global Star vs. T Rowe Price | Global Star vs. Apollo Global Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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