Correlation Between Globe Trade and Immobile
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on Globe Trade and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Immobile.
Diversification Opportunities for Globe Trade and Immobile
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globe and Immobile is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of Globe Trade i.e., Globe Trade and Immobile go up and down completely randomly.
Pair Corralation between Globe Trade and Immobile
Assuming the 90 days trading horizon Globe Trade Centre is expected to generate 1.01 times more return on investment than Immobile. However, Globe Trade is 1.01 times more volatile than Immobile. It trades about 0.05 of its potential returns per unit of risk. Immobile is currently generating about -0.05 per unit of risk. If you would invest 436.00 in Globe Trade Centre on August 24, 2024 and sell it today you would earn a total of 9.00 from holding Globe Trade Centre or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. Immobile
Performance |
| Timeline |
| Globe Trade Centre |
| Immobile |
Globe Trade and Immobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Immobile
The main advantage of trading using opposite Globe Trade and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile's long position.| Globe Trade vs. MLP Group SA | Globe Trade vs. Noble Financials SA | Globe Trade vs. Asseco Business Solutions | Globe Trade vs. Detalion Games SA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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