Correlation Between SECURE ELECTRONIC and NEWGOLD EXCHANGE
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and NEWGOLD EXCHANGE TRADED, you can compare the effects of market volatilities on SECURE ELECTRONIC and NEWGOLD EXCHANGE 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 SECURE ELECTRONIC with a short position of NEWGOLD EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and NEWGOLD EXCHANGE.
Diversification Opportunities for SECURE ELECTRONIC and NEWGOLD EXCHANGE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SECURE and NEWGOLD is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and NEWGOLD EXCHANGE TRADED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWGOLD EXCHANGE TRADED and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with NEWGOLD EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWGOLD EXCHANGE TRADED has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and NEWGOLD EXCHANGE go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and NEWGOLD EXCHANGE
Assuming the 90 days trading horizon SECURE ELECTRONIC is expected to generate 2.48 times less return on investment than NEWGOLD EXCHANGE. But when comparing it to its historical volatility, SECURE ELECTRONIC TECHNOLOGY is 1.64 times less risky than NEWGOLD EXCHANGE. It trades about 0.04 of its potential returns per unit of risk. NEWGOLD EXCHANGE TRADED is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,295,001 in NEWGOLD EXCHANGE TRADED on September 22, 2024 and sell it today you would earn a total of 704,999 from holding NEWGOLD EXCHANGE TRADED or generate 30.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. NEWGOLD EXCHANGE TRADED
Performance |
| Timeline |
| SECURE ELECTRONIC |
| NEWGOLD EXCHANGE TRADED |
SECURE ELECTRONIC and NEWGOLD EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and NEWGOLD EXCHANGE
The main advantage of trading using opposite SECURE ELECTRONIC and NEWGOLD EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, NEWGOLD EXCHANGE 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 NEWGOLD EXCHANGE will offset losses from the drop in NEWGOLD EXCHANGE's long position.| SECURE ELECTRONIC vs. GUINEA INSURANCE PLC | SECURE ELECTRONIC vs. VFD GROUP | SECURE ELECTRONIC vs. IKEJA HOTELS PLC | SECURE ELECTRONIC vs. VETIVA S P |
| NEWGOLD EXCHANGE vs. GUINEA INSURANCE PLC | NEWGOLD EXCHANGE vs. SECURE ELECTRONIC TECHNOLOGY | NEWGOLD EXCHANGE vs. VFD GROUP | NEWGOLD EXCHANGE vs. IKEJA HOTELS PLC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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