Correlation Between G Medical and Innovative Eyewear
Can any of the company-specific risk be diversified away by investing in both G Medical and Innovative Eyewear 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 G Medical and Innovative Eyewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Medical Innovations and Innovative Eyewear, you can compare the effects of market volatilities on G Medical and Innovative Eyewear 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 G Medical with a short position of Innovative Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Medical and Innovative Eyewear.
Diversification Opportunities for G Medical and Innovative Eyewear
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GMVD and Innovative is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding G Medical Innovations and Innovative Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Eyewear and G Medical 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 G Medical Innovations are associated (or correlated) with Innovative Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Eyewear has no effect on the direction of G Medical i.e., G Medical and Innovative Eyewear go up and down completely randomly.
Pair Corralation between G Medical and Innovative Eyewear
If you would invest 648.00 in Innovative Eyewear on August 24, 2024 and sell it today you would earn a total of 24.00 from holding Innovative Eyewear or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
G Medical Innovations vs. Innovative Eyewear
Performance |
| Timeline |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innovative Eyewear |
G Medical and Innovative Eyewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Medical and Innovative Eyewear
The main advantage of trading using opposite G Medical and Innovative Eyewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Medical position performs unexpectedly, Innovative Eyewear 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 Innovative Eyewear will offset losses from the drop in Innovative Eyewear's long position.| G Medical vs. Innovative Eyewear | G Medical vs. Sharps Technology | G Medical vs. JIN MEDICAL INTERNATIONAL | G Medical vs. Nexgel Inc |
| Innovative Eyewear vs. Teleflex Incorporated | Innovative Eyewear vs. The Cooper Companies, | Innovative Eyewear vs. West Pharmaceutical Services | Innovative Eyewear vs. ICU Medical |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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