Correlation Between Global Partner and Rose Hill
Can any of the company-specific risk be diversified away by investing in both Global Partner and Rose Hill 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 Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Partner Acquisition and Rose Hill Acquisition, you can compare the effects of market volatilities on Global Partner and Rose Hill 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 Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partner and Rose Hill.
Diversification Opportunities for Global Partner and Rose Hill
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Rose is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global Partner Acquisition and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition 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 Acquisition are associated (or correlated) with Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of Global Partner i.e., Global Partner and Rose Hill go up and down completely randomly.
Pair Corralation between Global Partner and Rose Hill
If you would invest 3.38 in Rose Hill Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Rose Hill Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.33% |
| Values | Daily Returns |
Global Partner Acquisition vs. Rose Hill Acquisition
Performance |
| Timeline |
| Global Partner Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Partner and Rose Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Partner and Rose Hill
The main advantage of trading using opposite Global Partner and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partner position performs unexpectedly, Rose Hill 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 Rose Hill will offset losses from the drop in Rose Hill's long position.The idea behind Global Partner Acquisition and Rose Hill Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Rose Hill vs. National Energy Services | Rose Hill vs. Oxbridge Re Holdings | Rose Hill vs. PAVmed Series Z |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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