Correlation Between TRADEDOUBLER and Globe Trade
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and Globe Trade 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 TRADEDOUBLER and Globe Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and Globe Trade Centre, you can compare the effects of market volatilities on TRADEDOUBLER and Globe Trade 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 TRADEDOUBLER with a short position of Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and Globe Trade.
Diversification Opportunities for TRADEDOUBLER and Globe Trade
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TRADEDOUBLER and Globe is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and Globe Trade go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and Globe Trade
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 4.61 times more return on investment than Globe Trade. However, TRADEDOUBLER is 4.61 times more volatile than Globe Trade Centre. It trades about 0.27 of its potential returns per unit of risk. Globe Trade Centre is currently generating about -0.32 per unit of risk. If you would invest 49.00 in TRADEDOUBLER AB SK on January 21, 2025 and sell it today you would earn a total of 8.00 from holding TRADEDOUBLER AB SK or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. Globe Trade Centre
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| Globe Trade Centre |
TRADEDOUBLER and Globe Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and Globe Trade
The main advantage of trading using opposite TRADEDOUBLER and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.| TRADEDOUBLER vs. Publicis Groupe SA | TRADEDOUBLER vs. Omnicom Group | TRADEDOUBLER vs. The Interpublic Group | TRADEDOUBLER vs. WPP PLC |
| Globe Trade vs. FAIR ISAAC | Globe Trade vs. LAir Liquide SA | Globe Trade vs. Wizz Air Holdings | Globe Trade vs. Sanyo Chemical Industries |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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