Correlation Between Global Partner and GPAC Old
Can any of the company-specific risk be diversified away by investing in both Global Partner and GPAC Old 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 Global Partner and GPAC Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Partner Acq and GPAC Old, you can compare the effects of market volatilities on Global Partner and GPAC Old 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 Global Partner with a short position of GPAC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partner and GPAC Old.
Diversification Opportunities for Global Partner and GPAC Old
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and GPAC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Global Partner Acq and GPAC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPAC Old and Global Partner 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 Global Partner Acq are associated (or correlated) with GPAC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPAC Old has no effect on the direction of Global Partner i.e., Global Partner and GPAC Old go up and down completely randomly.
Pair Corralation between Global Partner and GPAC Old
If you would invest (100.00) in GPAC Old on November 3, 2024 and sell it today you would earn a total of 100.00 from holding GPAC Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global Partner Acq vs. GPAC Old
Performance |
| Timeline |
| Global Partner Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GPAC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Partner and GPAC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Partner and GPAC Old
The main advantage of trading using opposite Global Partner and GPAC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partner position performs unexpectedly, GPAC Old 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 GPAC Old will offset losses from the drop in GPAC Old's long position.| Global Partner vs. Transportadora de Gas | Global Partner vs. Empresa Distribuidora y | Global Partner vs. United Natural Foods | Global Partner vs. Aris Water Solutions |
| GPAC Old vs. Hennessy Capital Investment | GPAC Old vs. Broad Capital Acquisition | GPAC Old vs. Manaris Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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