Correlation Between Industria and Gap
Can any of the company-specific risk be diversified away by investing in both Industria and Gap 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 Industria and Gap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industria de Diseno and The Gap, you can compare the effects of market volatilities on Industria and Gap 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 Industria with a short position of Gap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industria and Gap.
Diversification Opportunities for Industria and Gap
Pay attention - limited upside
The 3 months correlation between Industria and Gap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Industria de Diseno and The Gap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap and Industria 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 Industria de Diseno are associated (or correlated) with Gap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap has no effect on the direction of Industria i.e., Industria and Gap go up and down completely randomly.
Pair Corralation between Industria and Gap
If you would invest 4,966 in Industria de Diseno on November 2, 2024 and sell it today you would earn a total of 284.00 from holding Industria de Diseno or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Industria de Diseno vs. The Gap
Performance |
| Timeline |
| Industria de Diseno |
| Gap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Industria and Gap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industria and Gap
The main advantage of trading using opposite Industria and Gap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industria position performs unexpectedly, Gap 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 Gap will offset losses from the drop in Gap's long position.| Industria vs. USWE SPORTS AB | Industria vs. Playa Hotels Resorts | Industria vs. PLAY2CHILL SA ZY | Industria vs. China BlueChemical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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