Correlation Between Gremi Media and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both Gremi Media and Carlson Investments 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 Gremi Media and Carlson Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gremi Media SA and Carlson Investments SA, you can compare the effects of market volatilities on Gremi Media and Carlson Investments 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 Gremi Media with a short position of Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gremi Media and Carlson Investments.
Diversification Opportunities for Gremi Media and Carlson Investments
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gremi and Carlson is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gremi Media SA and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments and Gremi Media 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 Gremi Media SA are associated (or correlated) with Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Gremi Media i.e., Gremi Media and Carlson Investments go up and down completely randomly.
Pair Corralation between Gremi Media and Carlson Investments
Assuming the 90 days trading horizon Gremi Media is expected to generate 30.02 times less return on investment than Carlson Investments. But when comparing it to its historical volatility, Gremi Media SA is 2.98 times less risky than Carlson Investments. It trades about 0.01 of its potential returns per unit of risk. Carlson Investments SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 419.00 in Carlson Investments SA on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Carlson Investments SA or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.0% |
| Values | Daily Returns |
Gremi Media SA vs. Carlson Investments SA
Performance |
| Timeline |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Carlson Investments |
Gremi Media and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gremi Media and Carlson Investments
The main advantage of trading using opposite Gremi Media and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gremi Media position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.| Gremi Media vs. BNP Paribas Bank | Gremi Media vs. Road Studio SA | Gremi Media vs. mBank SA | Gremi Media vs. SOFTWARE MANSION SPOLKA |
| Carlson Investments vs. Echo Investment SA | Carlson Investments vs. Quantum Software SA | Carlson Investments vs. New Tech Venture | Carlson Investments vs. Cloud Technologies SA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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