Correlation Between Grand City and Afya
Can any of the company-specific risk be diversified away by investing in both Grand City and Afya 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 City and Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand City Properties and Afya, you can compare the effects of market volatilities on Grand City and Afya 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 City with a short position of Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand City and Afya.
Diversification Opportunities for Grand City and Afya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and Afya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand City Properties and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya and Grand City 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 City Properties are associated (or correlated) with Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Grand City i.e., Grand City and Afya go up and down completely randomly.
Pair Corralation between Grand City and Afya
If you would invest 1,578 in Afya on October 31, 2024 and sell it today you would earn a total of 60.00 from holding Afya or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand City Properties vs. Afya
Performance |
| Timeline |
| Grand City Properties |
| Afya |
Grand City and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand City and Afya
The main advantage of trading using opposite Grand City and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand City position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Grand City vs. Griffon | Grand City vs. Aldel Financial II | Grand City vs. Getty Realty | Grand City vs. BBB Foods |
| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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