Correlation Between Growthpoint Properties and Motus Holdings
Can any of the company-specific risk be diversified away by investing in both Growthpoint Properties and Motus Holdings 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 Growthpoint Properties and Motus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growthpoint Properties and Motus Holdings, you can compare the effects of market volatilities on Growthpoint Properties and Motus Holdings 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 Growthpoint Properties with a short position of Motus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Motus Holdings.
Diversification Opportunities for Growthpoint Properties and Motus Holdings
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growthpoint and Motus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Motus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motus Holdings and Growthpoint Properties 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 Growthpoint Properties are associated (or correlated) with Motus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motus Holdings has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Motus Holdings go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Motus Holdings
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 1.21 times less return on investment than Motus Holdings. But when comparing it to its historical volatility, Growthpoint Properties is 1.26 times less risky than Motus Holdings. It trades about 0.09 of its potential returns per unit of risk. Motus Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 932,341 in Motus Holdings on September 3, 2024 and sell it today you would earn a total of 298,659 from holding Motus Holdings or generate 32.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growthpoint Properties vs. Motus Holdings
Performance |
| Timeline |
| Growthpoint Properties |
| Motus Holdings |
Growthpoint Properties and Motus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Motus Holdings
The main advantage of trading using opposite Growthpoint Properties and Motus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Motus Holdings 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 Motus Holdings will offset losses from the drop in Motus Holdings' long position.| Growthpoint Properties vs. Harmony Gold Mining | Growthpoint Properties vs. Astoria Investments | Growthpoint Properties vs. Trematon Capital Investments | Growthpoint Properties vs. RCL Foods |
| Motus Holdings vs. Harmony Gold Mining | Motus Holdings vs. Deneb Investments | Motus Holdings vs. British American Tobacco | Motus Holdings vs. Master Drilling 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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