Correlation Between STRA Hannoversche and GB Group
Can any of the company-specific risk be diversified away by investing in both STRA Hannoversche and GB Group 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 STRA Hannoversche and GB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRA Hannoversche Verkehrsbetriebe and GB Group plc, you can compare the effects of market volatilities on STRA Hannoversche and GB Group 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 STRA Hannoversche with a short position of GB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRA Hannoversche and GB Group.
Diversification Opportunities for STRA Hannoversche and GB Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STRA and 0GB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STRA Hannoversche Verkehrsbetr and GB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GB Group plc and STRA Hannoversche 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 STRA Hannoversche Verkehrsbetriebe are associated (or correlated) with GB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GB Group plc has no effect on the direction of STRA Hannoversche i.e., STRA Hannoversche and GB Group go up and down completely randomly.
Pair Corralation between STRA Hannoversche and GB Group
If you would invest (100.00) in STRA Hannoversche Verkehrsbetriebe on October 24, 2024 and sell it today you would earn a total of 100.00 from holding STRA Hannoversche Verkehrsbetriebe or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
STRA Hannoversche Verkehrsbetr vs. GB Group plc
Performance |
| Timeline |
| STRA Hannoversche |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GB Group plc |
STRA Hannoversche and GB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRA Hannoversche and GB Group
The main advantage of trading using opposite STRA Hannoversche and GB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRA Hannoversche position performs unexpectedly, GB Group 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 GB Group will offset losses from the drop in GB Group's long position.| STRA Hannoversche vs. North American Construction | STRA Hannoversche vs. HANOVER INSURANCE | STRA Hannoversche vs. FARM 51 GROUP | STRA Hannoversche vs. UNIQA INSURANCE GR |
| GB Group vs. AGNC INVESTMENT | GB Group vs. Nishi Nippon Railroad Co | GB Group vs. WisdomTree Investments | GB Group vs. Apollo Investment Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |