Correlation Between Saule Technologies and Gremi Media
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Gremi Media 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 Saule Technologies and Gremi Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and Gremi Media SA, you can compare the effects of market volatilities on Saule Technologies and Gremi Media 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 Saule Technologies with a short position of Gremi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Gremi Media.
Diversification Opportunities for Saule Technologies and Gremi Media
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saule and Gremi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Gremi Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gremi Media SA and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with Gremi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gremi Media SA has no effect on the direction of Saule Technologies i.e., Saule Technologies and Gremi Media go up and down completely randomly.
Pair Corralation between Saule Technologies and Gremi Media
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Gremi Media. In addition to that, Saule Technologies is 3.71 times more volatile than Gremi Media SA. It trades about -0.06 of its total potential returns per unit of risk. Gremi Media SA is currently generating about 0.01 per unit of volatility. If you would invest 5,300 in Gremi Media SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Gremi Media SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 30.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Gremi Media SA
Performance |
| Timeline |
| Saule Technologies |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saule Technologies and Gremi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Gremi Media
The main advantage of trading using opposite Saule Technologies and Gremi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Gremi Media 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 Gremi Media will offset losses from the drop in Gremi Media's long position.| Saule Technologies vs. SOFTWARE MANSION SPOLKA | Saule Technologies vs. Investment Friends Capital | Saule Technologies vs. Cloud Technologies SA | Saule Technologies vs. Quantum Software SA |
| Gremi Media vs. Asseco Business Solutions | Gremi Media vs. Detalion Games SA | Gremi Media vs. Asseco South Eastern | Gremi Media vs. CFI Holding 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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