Correlation Between REVO INSURANCE and GOODTECH ASA
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and GOODTECH ASA 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 REVO INSURANCE and GOODTECH ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and GOODTECH ASA A, you can compare the effects of market volatilities on REVO INSURANCE and GOODTECH ASA 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 REVO INSURANCE with a short position of GOODTECH ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and GOODTECH ASA.
Diversification Opportunities for REVO INSURANCE and GOODTECH ASA
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between REVO and GOODTECH is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and GOODTECH ASA A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOODTECH ASA A and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with GOODTECH ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOODTECH ASA A has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and GOODTECH ASA go up and down completely randomly.
Pair Corralation between REVO INSURANCE and GOODTECH ASA
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 0.48 times more return on investment than GOODTECH ASA. However, REVO INSURANCE SPA is 2.07 times less risky than GOODTECH ASA. It trades about 0.06 of its potential returns per unit of risk. GOODTECH ASA A is currently generating about 0.02 per unit of risk. If you would invest 803.00 in REVO INSURANCE SPA on September 4, 2024 and sell it today you would earn a total of 277.00 from holding REVO INSURANCE SPA or generate 34.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. GOODTECH ASA A
Performance |
| Timeline |
| REVO INSURANCE SPA |
| GOODTECH ASA A |
REVO INSURANCE and GOODTECH ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and GOODTECH ASA
The main advantage of trading using opposite REVO INSURANCE and GOODTECH ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, GOODTECH ASA 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 GOODTECH ASA will offset losses from the drop in GOODTECH ASA's long position.| REVO INSURANCE vs. Alfa Financial Software | REVO INSURANCE vs. AXWAY SOFTWARE EO | REVO INSURANCE vs. National Beverage Corp | REVO INSURANCE vs. ETFS Coffee ETC |
| GOODTECH ASA vs. Chongqing Machinery Electric | GOODTECH ASA vs. AGRICULTBK HADR25 YC | GOODTECH ASA vs. WIMFARM SA EO | GOODTECH ASA vs. CeoTronics AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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