Correlation Between Investment Friends and Globe Trade
Can any of the company-specific risk be diversified away by investing in both Investment Friends and Globe Trade 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 Investment Friends and Globe Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Friends Capital and Globe Trade Centre, you can compare the effects of market volatilities on Investment Friends and Globe Trade 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 Investment Friends with a short position of Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Friends and Globe Trade.
Diversification Opportunities for Investment Friends and Globe Trade
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Globe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre and Investment Friends 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 Investment Friends Capital are associated (or correlated) with Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of Investment Friends i.e., Investment Friends and Globe Trade go up and down completely randomly.
Pair Corralation between Investment Friends and Globe Trade
If you would invest 530.00 in Investment Friends Capital on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Investment Friends Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment Friends Capital vs. Globe Trade Centre
Performance |
| Timeline |
| Investment Friends |
| Globe Trade Centre |
Investment Friends and Globe Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Friends and Globe Trade
The main advantage of trading using opposite Investment Friends and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Friends position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.| Investment Friends vs. Asseco Business Solutions | Investment Friends vs. Detalion Games SA | Investment Friends vs. Asseco South Eastern | Investment Friends vs. CFI Holding SA |
| Globe Trade vs. Enter Air SA | Globe Trade vs. PLAYWAY SA | Globe Trade vs. Skyline Investment SA | Globe Trade vs. Investment Friends Capital |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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