Correlation Between Raytech Holding and GobiMin
Can any of the company-specific risk be diversified away by investing in both Raytech Holding and GobiMin 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 Raytech Holding and GobiMin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytech Holding Limited and GobiMin, you can compare the effects of market volatilities on Raytech Holding and GobiMin 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 Raytech Holding with a short position of GobiMin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytech Holding and GobiMin.
Diversification Opportunities for Raytech Holding and GobiMin
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raytech and GobiMin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Raytech Holding Limited and GobiMin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GobiMin and Raytech Holding 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 Raytech Holding Limited are associated (or correlated) with GobiMin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GobiMin has no effect on the direction of Raytech Holding i.e., Raytech Holding and GobiMin go up and down completely randomly.
Pair Corralation between Raytech Holding and GobiMin
If you would invest 127.00 in GobiMin on September 14, 2024 and sell it today you would earn a total of 0.00 from holding GobiMin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Raytech Holding Limited vs. GobiMin
Performance |
| Timeline |
| Raytech Holding |
| GobiMin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Raytech Holding and GobiMin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raytech Holding and GobiMin
The main advantage of trading using opposite Raytech Holding and GobiMin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytech Holding position performs unexpectedly, GobiMin 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 GobiMin will offset losses from the drop in GobiMin's long position.| Raytech Holding vs. Steven Madden | Raytech Holding vs. Vera Bradley | Raytech Holding vs. Caleres | Raytech Holding vs. Wolverine World Wide |
| GobiMin vs. Toro Co | GobiMin vs. Skechers USA | GobiMin vs. RBC Bearings Incorporated | GobiMin vs. Raytech Holding Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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