Correlation Between GSC and Puffer
Can any of the company-specific risk be diversified away by investing in both GSC and Puffer 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 GSC and Puffer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSC and Puffer, you can compare the effects of market volatilities on GSC and Puffer 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 GSC with a short position of Puffer. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSC and Puffer.
Diversification Opportunities for GSC and Puffer
Pay attention - limited upside
The 3 months correlation between GSC and Puffer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GSC and Puffer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puffer and GSC 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 GSC are associated (or correlated) with Puffer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puffer has no effect on the direction of GSC i.e., GSC and Puffer go up and down completely randomly.
Pair Corralation between GSC and Puffer
If you would invest (100.00) in GSC on November 8, 2024 and sell it today you would earn a total of 100.00 from holding GSC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GSC vs. Puffer
Performance |
| Timeline |
| GSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Puffer |
GSC and Puffer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSC and Puffer
The main advantage of trading using opposite GSC and Puffer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSC position performs unexpectedly, Puffer 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 Puffer will offset losses from the drop in Puffer's long position.The idea behind GSC and Puffer pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |