Correlation Between GO2 People and Coles
Can any of the company-specific risk be diversified away by investing in both GO2 People and Coles 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 GO2 People and Coles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GO2 People and Coles Group, you can compare the effects of market volatilities on GO2 People and Coles 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 GO2 People with a short position of Coles. Check out your portfolio center. Please also check ongoing floating volatility patterns of GO2 People and Coles.
Diversification Opportunities for GO2 People and Coles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GO2 and Coles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GO2 People and Coles Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coles Group and GO2 People 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 GO2 People are associated (or correlated) with Coles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coles Group has no effect on the direction of GO2 People i.e., GO2 People and Coles go up and down completely randomly.
Pair Corralation between GO2 People and Coles
If you would invest 1,816 in Coles Group on September 26, 2024 and sell it today you would earn a total of 64.00 from holding Coles Group or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GO2 People vs. Coles Group
Performance |
| Timeline |
| GO2 People |
| Coles Group |
GO2 People and Coles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GO2 People and Coles
The main advantage of trading using opposite GO2 People and Coles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GO2 People position performs unexpectedly, Coles 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 Coles will offset losses from the drop in Coles' long position.| GO2 People vs. Aneka Tambang Tbk | GO2 People vs. Macquarie Group | GO2 People vs. Macquarie Group Ltd | GO2 People vs. Challenger |
| Coles vs. Accent Resources NL | Coles vs. Hutchison Telecommunications | Coles vs. Energy Resources | Coles vs. GO2 People |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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