Correlation Between Grupa HRC and Gremi Media
Can any of the company-specific risk be diversified away by investing in both Grupa HRC and Gremi Media 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 Grupa HRC and Gremi Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupa HRC SA and Gremi Media SA, you can compare the effects of market volatilities on Grupa HRC and Gremi Media 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 Grupa HRC with a short position of Gremi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupa HRC and Gremi Media.
Diversification Opportunities for Grupa HRC and Gremi Media
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grupa and Gremi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Grupa HRC SA and Gremi Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gremi Media SA and Grupa HRC 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 Grupa HRC SA are associated (or correlated) with Gremi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gremi Media SA has no effect on the direction of Grupa HRC i.e., Grupa HRC and Gremi Media go up and down completely randomly.
Pair Corralation between Grupa HRC and Gremi Media
Assuming the 90 days trading horizon Grupa HRC SA is expected to generate 1.5 times more return on investment than Gremi Media. However, Grupa HRC is 1.5 times more volatile than Gremi Media SA. It trades about 0.02 of its potential returns per unit of risk. Gremi Media SA is currently generating about -0.13 per unit of risk. If you would invest 109.00 in Grupa HRC SA on September 2, 2024 and sell it today you would lose (25.00) from holding Grupa HRC SA or give up 22.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 38.37% |
| Values | Daily Returns |
Grupa HRC SA vs. Gremi Media SA
Performance |
| Timeline |
| Grupa HRC SA |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupa HRC and Gremi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupa HRC and Gremi Media
The main advantage of trading using opposite Grupa HRC and Gremi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupa HRC position performs unexpectedly, Gremi Media 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 Gremi Media will offset losses from the drop in Gremi Media's long position.| Grupa HRC vs. UF Games SA | Grupa HRC vs. Mercator Medical SA | Grupa HRC vs. Immobile | Grupa HRC vs. Gamedust SA |
| Gremi Media vs. Asseco Business Solutions | Gremi Media vs. Detalion Games SA | Gremi Media vs. Asseco South Eastern | Gremi Media vs. CFI Holding SA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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