Correlation Between Grand Vision and EJF Investments
Can any of the company-specific risk be diversified away by investing in both Grand Vision and EJF Investments 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 Grand Vision and EJF Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Vision Media and EJF Investments, you can compare the effects of market volatilities on Grand Vision and EJF Investments 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 Grand Vision with a short position of EJF Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and EJF Investments.
Diversification Opportunities for Grand Vision and EJF Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and EJF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and EJF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EJF Investments and Grand Vision 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 Grand Vision Media are associated (or correlated) with EJF Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EJF Investments has no effect on the direction of Grand Vision i.e., Grand Vision and EJF Investments go up and down completely randomly.
Pair Corralation between Grand Vision and EJF Investments
Assuming the 90 days trading horizon Grand Vision Media is expected to under-perform the EJF Investments. In addition to that, Grand Vision is 2.23 times more volatile than EJF Investments. It trades about -0.03 of its total potential returns per unit of risk. EJF Investments is currently generating about 0.01 per unit of volatility. If you would invest 12,713 in EJF Investments on October 17, 2024 and sell it today you would lose (63.00) from holding EJF Investments or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Vision Media vs. EJF Investments
Performance |
| Timeline |
| Grand Vision Media |
| EJF Investments |
Grand Vision and EJF Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Vision and EJF Investments
The main advantage of trading using opposite Grand Vision and EJF Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision position performs unexpectedly, EJF Investments 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 EJF Investments will offset losses from the drop in EJF Investments' long position.| Grand Vision vs. Bellevue Healthcare Trust | Grand Vision vs. Naturhouse Health SA | Grand Vision vs. Arrow Electronics | Grand Vision vs. HCA Healthcare |
| EJF Investments vs. SupplyMe Capital PLC | EJF Investments vs. SM Energy Co | EJF Investments vs. FuelCell Energy | EJF Investments vs. Grand Vision Media |
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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