Correlation Between Grab Holdings and National Storm
Can any of the company-specific risk be diversified away by investing in both Grab Holdings and National Storm 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 Grab Holdings and National Storm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grab Holdings and National Storm Recovery, you can compare the effects of market volatilities on Grab Holdings and National Storm 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 Grab Holdings with a short position of National Storm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grab Holdings and National Storm.
Diversification Opportunities for Grab Holdings and National Storm
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grab and National is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grab Holdings and National Storm Recovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storm Recovery and Grab Holdings 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 Grab Holdings are associated (or correlated) with National Storm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storm Recovery has no effect on the direction of Grab Holdings i.e., Grab Holdings and National Storm go up and down completely randomly.
Pair Corralation between Grab Holdings and National Storm
Given the investment horizon of 90 days Grab Holdings is expected to generate 0.5 times more return on investment than National Storm. However, Grab Holdings is 2.01 times less risky than National Storm. It trades about 0.24 of its potential returns per unit of risk. National Storm Recovery is currently generating about -0.33 per unit of risk. If you would invest 417.00 in Grab Holdings on August 29, 2024 and sell it today you would earn a total of 98.00 from holding Grab Holdings or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grab Holdings vs. National Storm Recovery
Performance |
| Timeline |
| Grab Holdings |
| National Storm Recovery |
Grab Holdings and National Storm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grab Holdings and National Storm
The main advantage of trading using opposite Grab Holdings and National Storm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grab Holdings position performs unexpectedly, National Storm 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 National Storm will offset losses from the drop in National Storm's long position.| Grab Holdings vs. LYFT Inc | Grab Holdings vs. Kingsoft Cloud Holdings | Grab Holdings vs. AMTD Digital | Grab Holdings vs. Uber Technologies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |