Correlation Between PCF Group and Gobarto SA
Can any of the company-specific risk be diversified away by investing in both PCF Group and Gobarto SA 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 PCF Group and Gobarto SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PCF Group SA and Gobarto SA, you can compare the effects of market volatilities on PCF Group and Gobarto SA 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 PCF Group with a short position of Gobarto SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCF Group and Gobarto SA.
Diversification Opportunities for PCF Group and Gobarto SA
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PCF and Gobarto is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding PCF Group SA and Gobarto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gobarto SA and PCF Group 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 PCF Group SA are associated (or correlated) with Gobarto SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gobarto SA has no effect on the direction of PCF Group i.e., PCF Group and Gobarto SA go up and down completely randomly.
Pair Corralation between PCF Group and Gobarto SA
Assuming the 90 days trading horizon PCF Group SA is expected to under-perform the Gobarto SA. In addition to that, PCF Group is 1.63 times more volatile than Gobarto SA. It trades about -0.36 of its total potential returns per unit of risk. Gobarto SA is currently generating about -0.18 per unit of volatility. If you would invest 3,900 in Gobarto SA on August 30, 2024 and sell it today you would lose (740.00) from holding Gobarto SA or give up 18.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PCF Group SA vs. Gobarto SA
Performance |
| Timeline |
| PCF Group SA |
| Gobarto SA |
PCF Group and Gobarto SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCF Group and Gobarto SA
The main advantage of trading using opposite PCF Group and Gobarto SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCF Group position performs unexpectedly, Gobarto SA 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 Gobarto SA will offset losses from the drop in Gobarto SA's long position.| PCF Group vs. Saule Technologies SA | PCF Group vs. Tower Investments SA | PCF Group vs. Immobile | PCF Group vs. Igoria Trade SA |
| Gobarto SA vs. Carlson Investments SA | Gobarto SA vs. PZ Cormay SA | Gobarto SA vs. Detalion Games SA | Gobarto SA vs. Baked Games SA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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