Correlation Between Gobarto SA and NGG
Can any of the company-specific risk be diversified away by investing in both Gobarto SA and NGG 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 Gobarto SA and NGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gobarto SA and NGG, you can compare the effects of market volatilities on Gobarto SA and NGG 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 Gobarto SA with a short position of NGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gobarto SA and NGG.
Diversification Opportunities for Gobarto SA and NGG
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gobarto and NGG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gobarto SA and NGG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGG and Gobarto SA 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 Gobarto SA are associated (or correlated) with NGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGG has no effect on the direction of Gobarto SA i.e., Gobarto SA and NGG go up and down completely randomly.
Pair Corralation between Gobarto SA and NGG
If you would invest 2,660 in Gobarto SA on November 28, 2024 and sell it today you would lose (20.00) from holding Gobarto SA or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 9.09% |
| Values | Daily Returns |
Gobarto SA vs. NGG
Performance |
| Timeline |
| Gobarto SA |
| NGG |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Gobarto SA and NGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gobarto SA and NGG
The main advantage of trading using opposite Gobarto SA and NGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gobarto SA position performs unexpectedly, NGG 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 NGG will offset losses from the drop in NGG's long position.| Gobarto SA vs. UniCredit SpA | Gobarto SA vs. Santander Bank Polska | Gobarto SA vs. Bank Millennium SA | Gobarto SA vs. MW Trade SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |