Correlation Between Irish Continental and Glenveagh Properties
Can any of the company-specific risk be diversified away by investing in both Irish Continental and Glenveagh Properties 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 Irish Continental and Glenveagh Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Irish Continental Group and Glenveagh Properties PLC, you can compare the effects of market volatilities on Irish Continental and Glenveagh Properties 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 Irish Continental with a short position of Glenveagh Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Irish Continental and Glenveagh Properties.
Diversification Opportunities for Irish Continental and Glenveagh Properties
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Irish and Glenveagh is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Irish Continental Group and Glenveagh Properties PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glenveagh Properties PLC and Irish Continental 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 Irish Continental Group are associated (or correlated) with Glenveagh Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glenveagh Properties PLC has no effect on the direction of Irish Continental i.e., Irish Continental and Glenveagh Properties go up and down completely randomly.
Pair Corralation between Irish Continental and Glenveagh Properties
Assuming the 90 days trading horizon Irish Continental is expected to generate 1.58 times less return on investment than Glenveagh Properties. In addition to that, Irish Continental is 1.05 times more volatile than Glenveagh Properties PLC. It trades about 0.07 of its total potential returns per unit of risk. Glenveagh Properties PLC is currently generating about 0.11 per unit of volatility. If you would invest 113.00 in Glenveagh Properties PLC on August 27, 2024 and sell it today you would earn a total of 40.00 from holding Glenveagh Properties PLC or generate 35.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Irish Continental Group vs. Glenveagh Properties PLC
Performance |
| Timeline |
| Irish Continental |
| Glenveagh Properties PLC |
Irish Continental and Glenveagh Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Irish Continental and Glenveagh Properties
The main advantage of trading using opposite Irish Continental and Glenveagh Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Irish Continental position performs unexpectedly, Glenveagh Properties 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 Glenveagh Properties will offset losses from the drop in Glenveagh Properties' long position.| Irish Continental vs. Dalata Hotel Group | Irish Continental vs. Kingspan Group plc | Irish Continental vs. Glanbia PLC |
| Glenveagh Properties vs. AIB Group PLC | Glenveagh Properties vs. Dalata Hotel Group | Glenveagh Properties vs. Bank of Ireland |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |