Correlation Between Globe Trade and Logintrade
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on Globe Trade and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Logintrade.
Diversification Opportunities for Globe Trade and Logintrade
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Globe and Logintrade is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of Globe Trade i.e., Globe Trade and Logintrade go up and down completely randomly.
Pair Corralation between Globe Trade and Logintrade
Assuming the 90 days trading horizon Globe Trade is expected to generate 1.68 times less return on investment than Logintrade. But when comparing it to its historical volatility, Globe Trade Centre is 1.78 times less risky than Logintrade. It trades about 0.09 of its potential returns per unit of risk. Logintrade SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Logintrade SA on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Logintrade SA or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.42% |
| Values | Daily Returns |
Globe Trade Centre vs. Logintrade SA
Performance |
| Timeline |
| Globe Trade Centre |
| Logintrade SA |
Globe Trade and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Logintrade
The main advantage of trading using opposite Globe Trade and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| Globe Trade vs. Asseco Business Solutions | Globe Trade vs. Detalion Games SA | Globe Trade vs. Asseco South Eastern | Globe Trade vs. CFI Holding SA |
| Logintrade vs. GreenX Metals | Logintrade vs. Baked Games SA | Logintrade vs. SOFTWARE MANSION SPOLKA | Logintrade vs. True Games Syndicate |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |