Correlation Between Growthpoint Properties and GDI Property
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and GDI Property 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 Growthpoint Properties and GDI Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties Australia and GDI Property Group, you can compare the effects of market volatilities on Growthpoint Properties and GDI Property 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 Growthpoint Properties with a short position of GDI Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and GDI Property.
Diversification Opportunities for Growthpoint Properties and GDI Property
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Growthpoint and GDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties Austral and GDI Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDI Property Group and Growthpoint Properties 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 Growthpoint Properties Australia are associated (or correlated) with GDI Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDI Property Group has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and GDI Property go up and down completely randomly.
Pair Corralation between Growthpoint Properties and GDI Property
If you would invest 61.00 in GDI Property Group on September 12, 2024 and sell it today you would lose (3.00) from holding GDI Property Group or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Growthpoint Properties Austral vs. GDI Property Group
Performance |
| Timeline |
| Growthpoint Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GDI Property Group |
Growthpoint Properties and GDI Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and GDI Property
The main advantage of trading using opposite Growthpoint Properties and GDI Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, GDI Property 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 GDI Property will offset losses from the drop in GDI Property's long position.| Growthpoint Properties vs. Centaurus Metals | Growthpoint Properties vs. Falcon Metals | Growthpoint Properties vs. Black Rock Mining | Growthpoint Properties vs. Truscott Mining Corp |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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