Correlation Between GBS Software and Khiron Life
Can any of the company-specific risk be diversified away by investing in both GBS Software and Khiron Life 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 GBS Software and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBS Software AG and Khiron Life Sciences, you can compare the effects of market volatilities on GBS Software and Khiron Life 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 GBS Software with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBS Software and Khiron Life.
Diversification Opportunities for GBS Software and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GBS and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GBS Software AG and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences and GBS Software 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 GBS Software AG are associated (or correlated) with Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of GBS Software i.e., GBS Software and Khiron Life go up and down completely randomly.
Pair Corralation between GBS Software and Khiron Life
If you would invest 274.00 in GBS Software AG on November 4, 2024 and sell it today you would earn a total of 4.00 from holding GBS Software AG or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GBS Software AG vs. Khiron Life Sciences
Performance |
| Timeline |
| GBS Software AG |
| Khiron Life Sciences |
GBS Software and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBS Software and Khiron Life
The main advantage of trading using opposite GBS Software and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBS Software position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| GBS Software vs. SYSTEMAIR AB | GBS Software vs. LAir Liquide SA | GBS Software vs. AIR LIQUIDE ADR | GBS Software vs. Delta Air Lines |
| Khiron Life vs. Take Two Interactive Software | Khiron Life vs. Sumitomo Mitsui Construction | Khiron Life vs. Easy Software AG | Khiron Life vs. Tokyu Construction Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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