Correlation Between Gunkul Engineering and Beauty Community
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Beauty Community 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 Gunkul Engineering and Beauty Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunkul Engineering Public and Beauty Community Public, you can compare the effects of market volatilities on Gunkul Engineering and Beauty Community 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 Gunkul Engineering with a short position of Beauty Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Beauty Community.
Diversification Opportunities for Gunkul Engineering and Beauty Community
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gunkul and Beauty is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Beauty Community Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beauty Community Public and Gunkul Engineering 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 Gunkul Engineering Public are associated (or correlated) with Beauty Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beauty Community Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Beauty Community go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Beauty Community
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Beauty Community. But the stock apears to be less risky and, when comparing its historical volatility, Gunkul Engineering Public is 29.33 times less risky than Beauty Community. The stock trades about 0.0 of its potential returns per unit of risk. The Beauty Community Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Beauty Community Public on August 25, 2024 and sell it today you would lose (8.00) from holding Beauty Community Public or give up 17.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Beauty Community Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Beauty Community Public |
Gunkul Engineering and Beauty Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Beauty Community
The main advantage of trading using opposite Gunkul Engineering and Beauty Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Beauty Community 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 Beauty Community will offset losses from the drop in Beauty Community's long position.| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. Banpu Public | Gunkul Engineering vs. WHA Public |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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