Correlation Between Gratifii and Autosports
Can any of the company-specific risk be diversified away by investing in both Gratifii and Autosports 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 Gratifii and Autosports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gratifii and Autosports Group, you can compare the effects of market volatilities on Gratifii and Autosports 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 Gratifii with a short position of Autosports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gratifii and Autosports.
Diversification Opportunities for Gratifii and Autosports
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gratifii and Autosports is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gratifii and Autosports Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autosports Group and Gratifii 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 Gratifii are associated (or correlated) with Autosports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autosports Group has no effect on the direction of Gratifii i.e., Gratifii and Autosports go up and down completely randomly.
Pair Corralation between Gratifii and Autosports
Assuming the 90 days trading horizon Gratifii is expected to generate 5.69 times more return on investment than Autosports. However, Gratifii is 5.69 times more volatile than Autosports Group. It trades about 0.04 of its potential returns per unit of risk. Autosports Group is currently generating about 0.01 per unit of risk. If you would invest 22.00 in Gratifii on August 31, 2024 and sell it today you would lose (11.00) from holding Gratifii or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gratifii vs. Autosports Group
Performance |
| Timeline |
| Gratifii |
| Autosports Group |
Gratifii and Autosports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gratifii and Autosports
The main advantage of trading using opposite Gratifii and Autosports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gratifii position performs unexpectedly, Autosports 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 Autosports will offset losses from the drop in Autosports' long position.| Gratifii vs. Amani Gold | Gratifii vs. A1 Investments Resources | Gratifii vs. Coronado Global Resources | Gratifii vs. Hutchison Telecommunications |
| Autosports vs. Aneka Tambang Tbk | Autosports vs. Unibail Rodamco Westfield SE | Autosports vs. Macquarie Group | Autosports vs. Commonwealth Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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