Correlation Between Grand Investment and Reacap Financial
Can any of the company-specific risk be diversified away by investing in both Grand Investment and Reacap Financial 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 Grand Investment and Reacap Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Investment Capital and Reacap Financial Investments, you can compare the effects of market volatilities on Grand Investment and Reacap Financial 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 Grand Investment with a short position of Reacap Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Investment and Reacap Financial.
Diversification Opportunities for Grand Investment and Reacap Financial
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and Reacap is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Grand Investment Capital and Reacap Financial Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reacap Financial Inv and Grand Investment 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 Grand Investment Capital are associated (or correlated) with Reacap Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reacap Financial Inv has no effect on the direction of Grand Investment i.e., Grand Investment and Reacap Financial go up and down completely randomly.
Pair Corralation between Grand Investment and Reacap Financial
Assuming the 90 days trading horizon Grand Investment Capital is expected to generate 1.79 times more return on investment than Reacap Financial. However, Grand Investment is 1.79 times more volatile than Reacap Financial Investments. It trades about 0.05 of its potential returns per unit of risk. Reacap Financial Investments is currently generating about -0.08 per unit of risk. If you would invest 1,030 in Grand Investment Capital on November 4, 2024 and sell it today you would earn a total of 19.00 from holding Grand Investment Capital or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Investment Capital vs. Reacap Financial Investments
Performance |
| Timeline |
| Grand Investment Capital |
| Reacap Financial Inv |
Grand Investment and Reacap Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Investment and Reacap Financial
The main advantage of trading using opposite Grand Investment and Reacap Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Investment position performs unexpectedly, Reacap Financial 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 Reacap Financial will offset losses from the drop in Reacap Financial's long position.| Grand Investment vs. Act Financial | Grand Investment vs. Mohandes Insurance | Grand Investment vs. Qatar Natl Bank | Grand Investment vs. Dice Sport Casual |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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