Correlation Between Wag Group and Grindr
Can any of the company-specific risk be diversified away by investing in both Wag Group and Grindr 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 Wag Group and Grindr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wag Group Co and Grindr Inc, you can compare the effects of market volatilities on Wag Group and Grindr 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 Wag Group with a short position of Grindr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wag Group and Grindr.
Diversification Opportunities for Wag Group and Grindr
Pay attention - limited upside
The 3 months correlation between Wag and Grindr is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Wag Group Co and Grindr Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindr Inc and Wag 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 Wag Group Co are associated (or correlated) with Grindr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindr Inc has no effect on the direction of Wag Group i.e., Wag Group and Grindr go up and down completely randomly.
Pair Corralation between Wag Group and Grindr
Considering the 90-day investment horizon Wag Group Co is expected to under-perform the Grindr. In addition to that, Wag Group is 8.31 times more volatile than Grindr Inc. It trades about -0.25 of its total potential returns per unit of risk. Grindr Inc is currently generating about 0.31 per unit of volatility. If you would invest 1,341 in Grindr Inc on August 27, 2024 and sell it today you would earn a total of 179.00 from holding Grindr Inc or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wag Group Co vs. Grindr Inc
Performance |
| Timeline |
| Wag Group |
| Grindr Inc |
Wag Group and Grindr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wag Group and Grindr
The main advantage of trading using opposite Wag Group and Grindr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wag Group position performs unexpectedly, Grindr 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 Grindr will offset losses from the drop in Grindr's long position.| Wag Group vs. ePlus inc | Wag Group vs. Progress Software | Wag Group vs. Agilysys | Wag Group vs. Sapiens International |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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