Correlation Between GEROVA Financial and Triad Guaranty
Can any of the company-specific risk be diversified away by investing in both GEROVA Financial and Triad Guaranty 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 GEROVA Financial and Triad Guaranty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEROVA Financial Group and Triad Guaranty, you can compare the effects of market volatilities on GEROVA Financial and Triad Guaranty 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 GEROVA Financial with a short position of Triad Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEROVA Financial and Triad Guaranty.
Diversification Opportunities for GEROVA Financial and Triad Guaranty
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GEROVA and Triad is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GEROVA Financial Group and Triad Guaranty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triad Guaranty and GEROVA Financial 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 GEROVA Financial Group are associated (or correlated) with Triad Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triad Guaranty has no effect on the direction of GEROVA Financial i.e., GEROVA Financial and Triad Guaranty go up and down completely randomly.
Pair Corralation between GEROVA Financial and Triad Guaranty
If you would invest 0.02 in Triad Guaranty on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Triad Guaranty or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
GEROVA Financial Group vs. Triad Guaranty
Performance |
| Timeline |
| GEROVA Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Triad Guaranty |
GEROVA Financial and Triad Guaranty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEROVA Financial and Triad Guaranty
The main advantage of trading using opposite GEROVA Financial and Triad Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEROVA Financial position performs unexpectedly, Triad Guaranty 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 Triad Guaranty will offset losses from the drop in Triad Guaranty's long position.| GEROVA Financial vs. Simon Property Group | GEROVA Financial vs. Meiwu Technology Co | GEROVA Financial vs. Titan Machinery | GEROVA Financial vs. Sellas Life Sciences |
| Triad Guaranty vs. Natural Alternatives International | Triad Guaranty vs. Citi Trends | Triad Guaranty vs. Ralph Lauren Corp | Triad Guaranty vs. Silo Pharma |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |