Correlation Between Globavend Holdings and United Parcel
Can any of the company-specific risk be diversified away by investing in both Globavend Holdings and United Parcel 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 Globavend Holdings and United Parcel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globavend Holdings Limited and United Parcel Service, you can compare the effects of market volatilities on Globavend Holdings and United Parcel 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 Globavend Holdings with a short position of United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globavend Holdings and United Parcel.
Diversification Opportunities for Globavend Holdings and United Parcel
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Globavend and United is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Globavend Holdings Limited and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service and Globavend Holdings 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 Globavend Holdings Limited are associated (or correlated) with United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of Globavend Holdings i.e., Globavend Holdings and United Parcel go up and down completely randomly.
Pair Corralation between Globavend Holdings and United Parcel
Considering the 90-day investment horizon Globavend Holdings Limited is expected to generate 4.5 times more return on investment than United Parcel. However, Globavend Holdings is 4.5 times more volatile than United Parcel Service. It trades about 0.21 of its potential returns per unit of risk. United Parcel Service is currently generating about 0.24 per unit of risk. If you would invest 61.00 in Globavend Holdings Limited on October 26, 2024 and sell it today you would earn a total of 12.00 from holding Globavend Holdings Limited or generate 19.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Globavend Holdings Limited vs. United Parcel Service
Performance |
| Timeline |
| Globavend Holdings |
| United Parcel Service |
Globavend Holdings and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globavend Holdings and United Parcel
The main advantage of trading using opposite Globavend Holdings and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globavend Holdings position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| Globavend Holdings vs. Shenzhen Investment Holdings | Globavend Holdings vs. Virtus Investment Partners, | Globavend Holdings vs. Nascent Wine | Globavend Holdings vs. MGIC Investment Corp |
| United Parcel vs. Expeditors International of | United Parcel vs. FedEx | United Parcel vs. BingEx | United Parcel vs. Globavend Holdings Limited |
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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