Correlation Between Penneo AS and Gabriel Holding
Can any of the company-specific risk be diversified away by investing in both Penneo AS and Gabriel Holding 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 Penneo AS and Gabriel Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penneo AS and Gabriel Holding, you can compare the effects of market volatilities on Penneo AS and Gabriel Holding 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 Penneo AS with a short position of Gabriel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penneo AS and Gabriel Holding.
Diversification Opportunities for Penneo AS and Gabriel Holding
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Penneo and Gabriel is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Penneo AS and Gabriel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabriel Holding and Penneo AS 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 Penneo AS are associated (or correlated) with Gabriel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabriel Holding has no effect on the direction of Penneo AS i.e., Penneo AS and Gabriel Holding go up and down completely randomly.
Pair Corralation between Penneo AS and Gabriel Holding
Assuming the 90 days trading horizon Penneo AS is expected to generate 3.96 times more return on investment than Gabriel Holding. However, Penneo AS is 3.96 times more volatile than Gabriel Holding. It trades about 0.2 of its potential returns per unit of risk. Gabriel Holding is currently generating about -0.16 per unit of risk. If you would invest 822.00 in Penneo AS on September 1, 2024 and sell it today you would earn a total of 758.00 from holding Penneo AS or generate 92.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Penneo AS vs. Gabriel Holding
Performance |
| Timeline |
| Penneo AS |
| Gabriel Holding |
Penneo AS and Gabriel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penneo AS and Gabriel Holding
The main advantage of trading using opposite Penneo AS and Gabriel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penneo AS position performs unexpectedly, Gabriel Holding 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 Gabriel Holding will offset losses from the drop in Gabriel Holding's long position.| Penneo AS vs. cBrain AS | Penneo AS vs. FOM Technologies AS | Penneo AS vs. ChemoMetec AS | Penneo AS vs. BioPorto |
| Gabriel Holding vs. SP Group AS | Gabriel Holding vs. Columbus AS | Gabriel Holding vs. Schouw Co | Gabriel Holding vs. RTX AS |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world |