Correlation Between GLOBUS MEDICAL-A and Brinks
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL-A and Brinks 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 GLOBUS MEDICAL-A and Brinks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and The Brinks, you can compare the effects of market volatilities on GLOBUS MEDICAL-A and Brinks 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 GLOBUS MEDICAL-A with a short position of Brinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL-A and Brinks.
Diversification Opportunities for GLOBUS MEDICAL-A and Brinks
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLOBUS and Brinks is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and The Brinks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks and GLOBUS MEDICAL-A 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 GLOBUS MEDICAL A are associated (or correlated) with Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks has no effect on the direction of GLOBUS MEDICAL-A i.e., GLOBUS MEDICAL-A and Brinks go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL-A and Brinks
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 1.42 times more return on investment than Brinks. However, GLOBUS MEDICAL-A is 1.42 times more volatile than The Brinks. It trades about 0.23 of its potential returns per unit of risk. The Brinks is currently generating about -0.1 per unit of risk. If you would invest 7,800 in GLOBUS MEDICAL A on October 17, 2024 and sell it today you would earn a total of 650.00 from holding GLOBUS MEDICAL A or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. The Brinks
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| Brinks |
GLOBUS MEDICAL-A and Brinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL-A and Brinks
The main advantage of trading using opposite GLOBUS MEDICAL-A and Brinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL-A position performs unexpectedly, Brinks 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 Brinks will offset losses from the drop in Brinks' long position.| GLOBUS MEDICAL-A vs. Chesapeake Utilities | GLOBUS MEDICAL-A vs. EMBARK EDUCATION LTD | GLOBUS MEDICAL-A vs. Luckin Coffee | GLOBUS MEDICAL-A vs. betterU Education Corp |
| Brinks vs. Fukuyama Transporting Co | Brinks vs. Siamgas And Petrochemicals | Brinks vs. Uber Technologies | Brinks vs. Sunny Optical 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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