Correlation Between GobiMin and Banco De

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GobiMin and Banco De 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 GobiMin and Banco De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GobiMin and Banco de Sabadell, you can compare the effects of market volatilities on GobiMin and Banco De 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 GobiMin with a short position of Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of GobiMin and Banco De.

Diversification Opportunities for GobiMin and Banco De

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between GobiMin and Banco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GobiMin and Banco de Sabadell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Sabadell and GobiMin 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 GobiMin are associated (or correlated) with Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Sabadell has no effect on the direction of GobiMin i.e., GobiMin and Banco De go up and down completely randomly.

Pair Corralation between GobiMin and Banco De

If you would invest  233.00  in Banco de Sabadell on September 1, 2024 and sell it today you would earn a total of  142.00  from holding Banco de Sabadell or generate 60.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy0.59%
ValuesDaily Returns

GobiMin  vs.  Banco de Sabadell

 Performance 
       Timeline  
GobiMin 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GobiMin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, GobiMin is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Banco de Sabadell 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Banco de Sabadell has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

GobiMin and Banco De Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GobiMin and Banco De

The main advantage of trading using opposite GobiMin and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GobiMin position performs unexpectedly, Banco De 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 Banco De will offset losses from the drop in Banco De's long position.
The idea behind GobiMin and Banco de Sabadell pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios