Correlation Between Squirrel Media and GMP Property
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and GMP Property 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 Squirrel Media and GMP Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and GMP Property SOCIMI, you can compare the effects of market volatilities on Squirrel Media and GMP Property 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 Squirrel Media with a short position of GMP Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and GMP Property.
Diversification Opportunities for Squirrel Media and GMP Property
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Squirrel and GMP is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and GMP Property SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMP Property SOCIMI and Squirrel Media 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 Squirrel Media SA are associated (or correlated) with GMP Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMP Property SOCIMI has no effect on the direction of Squirrel Media i.e., Squirrel Media and GMP Property go up and down completely randomly.
Pair Corralation between Squirrel Media and GMP Property
Assuming the 90 days trading horizon Squirrel Media SA is expected to under-perform the GMP Property. But the stock apears to be less risky and, when comparing its historical volatility, Squirrel Media SA is 1.22 times less risky than GMP Property. The stock trades about -0.2 of its potential returns per unit of risk. The GMP Property SOCIMI is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,650 in GMP Property SOCIMI on September 2, 2024 and sell it today you would earn a total of 950.00 from holding GMP Property SOCIMI or generate 16.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Squirrel Media SA vs. GMP Property SOCIMI
Performance |
| Timeline |
| Squirrel Media SA |
| GMP Property SOCIMI |
Squirrel Media and GMP Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and GMP Property
The main advantage of trading using opposite Squirrel Media and GMP Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, GMP Property 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 GMP Property will offset losses from the drop in GMP Property's long position.| Squirrel Media vs. Borges Agricultural Industrial | Squirrel Media vs. Neinor Homes SLU | Squirrel Media vs. Parlem Telecom Companyia | Squirrel Media vs. Inhome Prime Properties |
| GMP Property vs. Labiana Health SA | GMP Property vs. Squirrel Media SA | GMP Property vs. Plasticos Compuestos SA | GMP Property vs. Borges Agricultural Industrial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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