Correlation Between Globe Trade and Detalion Games
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Detalion Games 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 Globe Trade and Detalion Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and Detalion Games SA, you can compare the effects of market volatilities on Globe Trade and Detalion Games 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 Globe Trade with a short position of Detalion Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Detalion Games.
Diversification Opportunities for Globe Trade and Detalion Games
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Globe and Detalion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Detalion Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detalion Games SA and Globe Trade 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 Globe Trade Centre are associated (or correlated) with Detalion Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detalion Games SA has no effect on the direction of Globe Trade i.e., Globe Trade and Detalion Games go up and down completely randomly.
Pair Corralation between Globe Trade and Detalion Games
Assuming the 90 days trading horizon Globe Trade Centre is expected to generate 0.32 times more return on investment than Detalion Games. However, Globe Trade Centre is 3.14 times less risky than Detalion Games. It trades about 0.12 of its potential returns per unit of risk. Detalion Games SA is currently generating about -0.27 per unit of risk. If you would invest 411.00 in Globe Trade Centre on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Globe Trade Centre or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.0% |
| Values | Daily Returns |
Globe Trade Centre vs. Detalion Games SA
Performance |
| Timeline |
| Globe Trade Centre |
| Detalion Games SA |
Globe Trade and Detalion Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Detalion Games
The main advantage of trading using opposite Globe Trade and Detalion Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Detalion Games 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 Detalion Games will offset losses from the drop in Detalion Games' long position.| Globe Trade vs. Asseco Business Solutions | Globe Trade vs. Detalion Games SA | Globe Trade vs. CFI Holding SA | Globe Trade vs. HM Inwest SA |
| Detalion Games vs. Banco Santander SA | Detalion Games vs. UniCredit SpA | Detalion Games vs. CEZ as | Detalion Games vs. Polski Koncern Naftowy |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |