Correlation Between GN Store and Dataproces Group
Can any of the company-specific risk be diversified away by investing in both GN Store and Dataproces Group 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 GN Store and Dataproces Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GN Store Nord and Dataproces Group AS, you can compare the effects of market volatilities on GN Store and Dataproces Group 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 GN Store with a short position of Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GN Store and Dataproces Group.
Diversification Opportunities for GN Store and Dataproces Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GN Store and Dataproces is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and GN Store 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 GN Store Nord are associated (or correlated) with Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of GN Store i.e., GN Store and Dataproces Group go up and down completely randomly.
Pair Corralation between GN Store and Dataproces Group
Assuming the 90 days horizon GN Store Nord is expected to under-perform the Dataproces Group. In addition to that, GN Store is 1.31 times more volatile than Dataproces Group AS. It trades about -0.07 of its total potential returns per unit of risk. Dataproces Group AS is currently generating about 0.05 per unit of volatility. If you would invest 585.00 in Dataproces Group AS on September 18, 2024 and sell it today you would earn a total of 10.00 from holding Dataproces Group AS or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GN Store Nord vs. Dataproces Group AS
Performance |
| Timeline |
| GN Store Nord |
| Dataproces Group |
GN Store and Dataproces Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GN Store and Dataproces Group
The main advantage of trading using opposite GN Store and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store position performs unexpectedly, Dataproces Group 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 Dataproces Group will offset losses from the drop in Dataproces Group's long position.| GN Store vs. Dataproces Group AS | GN Store vs. cBrain AS | GN Store vs. Nilfisk Holding AS | GN Store vs. Danish Aerospace |
| Dataproces Group vs. GN Store Nord | Dataproces Group vs. Ambu AS | Dataproces Group vs. ROCKWOOL International AS | Dataproces Group vs. Genmab AS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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