Correlation Between Polar Capital and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Polar Capital and Grand Vision 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 Polar Capital and Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Grand Vision Media, you can compare the effects of market volatilities on Polar Capital and Grand Vision 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 Polar Capital with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Grand Vision.
Diversification Opportunities for Polar Capital and Grand Vision
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polar and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Polar Capital 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 Polar Capital Technology are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Polar Capital i.e., Polar Capital and Grand Vision go up and down completely randomly.
Pair Corralation between Polar Capital and Grand Vision
If you would invest 34,050 in Polar Capital Technology on October 11, 2024 and sell it today you would earn a total of 1,250 from holding Polar Capital Technology or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Capital Technology vs. Grand Vision Media
Performance |
| Timeline |
| Polar Capital Technology |
| Grand Vision Media |
Polar Capital and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Grand Vision
The main advantage of trading using opposite Polar Capital and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| Polar Capital vs. Smithson Investment Trust | Polar Capital vs. Bankers Investment Trust | Polar Capital vs. Zoom Video Communications | Polar Capital vs. New Residential Investment |
| Grand Vision vs. Cornish Metals | Grand Vision vs. Micron Technology | Grand Vision vs. Accesso Technology Group | Grand Vision vs. Polar Capital Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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