Correlation Between GP Investments and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both GP Investments and Hospital Mater 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 Hospital Mater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Investments and Hospital Mater Dei, you can compare the effects of market volatilities on GP Investments and Hospital Mater 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 Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Investments and Hospital Mater.
Diversification Opportunities for GP Investments and Hospital Mater
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GPIV33 and Hospital is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding GP Investments and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei 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 Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of GP Investments i.e., GP Investments and Hospital Mater go up and down completely randomly.
Pair Corralation between GP Investments and Hospital Mater
Assuming the 90 days trading horizon GP Investments is expected to generate 1.23 times more return on investment than Hospital Mater. However, GP Investments is 1.23 times more volatile than Hospital Mater Dei. It trades about 0.07 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about 0.0 per unit of risk. If you would invest 380.00 in GP Investments on August 30, 2024 and sell it today you would earn a total of 13.00 from holding GP Investments or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GP Investments vs. Hospital Mater Dei
Performance |
| Timeline |
| GP Investments |
| Hospital Mater Dei |
GP Investments and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Investments and Hospital Mater
The main advantage of trading using opposite GP Investments and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Investments position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| GP Investments vs. Global X Funds | GP Investments vs. American Airlines Group | GP Investments vs. Southwest Airlines Co | GP Investments vs. Unity Software |
| Hospital Mater vs. Charter Communications | Hospital Mater vs. Metalrgica Riosulense SA | Hospital Mater vs. Healthpeak Properties | Hospital Mater vs. Lloyds Banking Group |
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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