Correlation Between SCANDMEDICAL SOLDK-040 and GB Group
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and GB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and GB Group plc, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of GB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and GB Group.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and GB Group
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCANDMEDICAL and 0GB is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and GB Group go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and GB Group
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to generate 1.6 times more return on investment than GB Group. However, SCANDMEDICAL SOLDK-040 is 1.6 times more volatile than GB Group plc. It trades about -0.02 of its potential returns per unit of risk. GB Group plc is currently generating about -0.36 per unit of risk. If you would invest 77.00 in SCANDMEDICAL SOLDK 040 on October 10, 2024 and sell it today you would lose (1.00) from holding SCANDMEDICAL SOLDK 040 or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. GB Group plc
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| GB Group plc |
SCANDMEDICAL SOLDK-040 and GB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and GB Group
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and GB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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.| SCANDMEDICAL SOLDK-040 vs. Boston Scientific | SCANDMEDICAL SOLDK-040 vs. Zimmer Biomet Holdings | SCANDMEDICAL SOLDK-040 vs. Align Technology | SCANDMEDICAL SOLDK-040 vs. Superior Plus Corp |
| GB Group vs. Scottish Mortgage Investment | GB Group vs. Thai Beverage Public | GB Group vs. Gladstone Investment | GB Group vs. Performance Food Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |