Correlation Between GP Investments and Fras Le
Can any of the company-specific risk be diversified away by investing in both GP Investments and Fras Le 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 GP Investments and Fras Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Investments and Fras le SA, you can compare the effects of market volatilities on GP Investments and Fras Le 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 GP Investments with a short position of Fras Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Investments and Fras Le.
Diversification Opportunities for GP Investments and Fras Le
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GPIV33 and Fras is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding GP Investments and Fras le SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fras le SA and GP Investments 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 GP Investments are associated (or correlated) with Fras Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fras le SA has no effect on the direction of GP Investments i.e., GP Investments and Fras Le go up and down completely randomly.
Pair Corralation between GP Investments and Fras Le
Assuming the 90 days trading horizon GP Investments is expected to generate 1.36 times less return on investment than Fras Le. In addition to that, GP Investments is 2.07 times more volatile than Fras le SA. It trades about 0.04 of its total potential returns per unit of risk. Fras le SA is currently generating about 0.11 per unit of volatility. If you would invest 1,179 in Fras le SA on August 27, 2024 and sell it today you would earn a total of 886.00 from holding Fras le SA or generate 75.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.93% |
| Values | Daily Returns |
GP Investments vs. Fras le SA
Performance |
| Timeline |
| GP Investments |
| Fras le SA |
GP Investments and Fras Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Investments and Fras Le
The main advantage of trading using opposite GP Investments and Fras Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Investments position performs unexpectedly, Fras Le 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 Fras Le will offset losses from the drop in Fras Le's long position.| GP Investments vs. Fras le SA | GP Investments vs. Clave Indices De | GP Investments vs. BTG Pactual Logstica | GP Investments vs. Telefonaktiebolaget LM Ericsson |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |