Correlation Between GomSpace Group and Gapwaves
Can any of the company-specific risk be diversified away by investing in both GomSpace Group and Gapwaves 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 GomSpace Group and Gapwaves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GomSpace Group AB and Gapwaves AB Series, you can compare the effects of market volatilities on GomSpace Group and Gapwaves 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 GomSpace Group with a short position of Gapwaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of GomSpace Group and Gapwaves.
Diversification Opportunities for GomSpace Group and Gapwaves
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GomSpace and Gapwaves is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GomSpace Group AB and Gapwaves AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gapwaves AB Series and GomSpace Group 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 GomSpace Group AB are associated (or correlated) with Gapwaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gapwaves AB Series has no effect on the direction of GomSpace Group i.e., GomSpace Group and Gapwaves go up and down completely randomly.
Pair Corralation between GomSpace Group and Gapwaves
Assuming the 90 days trading horizon GomSpace Group AB is expected to generate 0.54 times more return on investment than Gapwaves. However, GomSpace Group AB is 1.84 times less risky than Gapwaves. It trades about 0.09 of its potential returns per unit of risk. Gapwaves AB Series is currently generating about -0.3 per unit of risk. If you would invest 439.00 in GomSpace Group AB on September 2, 2024 and sell it today you would earn a total of 19.00 from holding GomSpace Group AB or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GomSpace Group AB vs. Gapwaves AB Series
Performance |
| Timeline |
| GomSpace Group AB |
| Gapwaves AB Series |
GomSpace Group and Gapwaves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GomSpace Group and Gapwaves
The main advantage of trading using opposite GomSpace Group and Gapwaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GomSpace Group position performs unexpectedly, Gapwaves 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 Gapwaves will offset losses from the drop in Gapwaves' long position.| GomSpace Group vs. Samhllsbyggnadsbolaget i Norden | GomSpace Group vs. Sinch AB | GomSpace Group vs. Embracer Group AB | GomSpace Group vs. Evolution AB |
| Gapwaves vs. Sivers IMA Holding | Gapwaves vs. SaltX Technology Holding | Gapwaves vs. Acconeer AB | Gapwaves vs. Fingerprint Cards AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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