Correlation Between GO2 People and Pact Group
Can any of the company-specific risk be diversified away by investing in both GO2 People and Pact 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 GO2 People and Pact Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GO2 People and Pact Group Holdings, you can compare the effects of market volatilities on GO2 People and Pact 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 GO2 People with a short position of Pact Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GO2 People and Pact Group.
Diversification Opportunities for GO2 People and Pact Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GO2 and Pact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GO2 People and Pact Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pact Group Holdings 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 Pact Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pact Group Holdings has no effect on the direction of GO2 People i.e., GO2 People and Pact Group go up and down completely randomly.
Pair Corralation between GO2 People and Pact Group
Assuming the 90 days trading horizon GO2 People is expected to generate 17.25 times more return on investment than Pact Group. However, GO2 People is 17.25 times more volatile than Pact Group Holdings. It trades about 0.05 of its potential returns per unit of risk. Pact Group Holdings is currently generating about 0.0 per unit of risk. If you would invest 1.20 in GO2 People on November 19, 2024 and sell it today you would earn a total of 65.80 from holding GO2 People or generate 5483.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.39% |
| Values | Daily Returns |
GO2 People vs. Pact Group Holdings
Performance |
| Timeline |
| GO2 People |
| Pact Group Holdings |
GO2 People and Pact Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GO2 People and Pact Group
The main advantage of trading using opposite GO2 People and Pact Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GO2 People position performs unexpectedly, Pact 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 Pact Group will offset losses from the drop in Pact Group's long position.| GO2 People vs. Aeon Metals | GO2 People vs. Epsilon Healthcare | GO2 People vs. Catalyst Metals | GO2 People vs. Truscott Mining Corp |
| Pact Group vs. Nex Metals Explorations | Pact Group vs. Centrex Metals | Pact Group vs. Aussie Broadband | Pact Group vs. Stelar Metals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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