Correlation Between Team Internet and Greatland Gold
Can any of the company-specific risk be diversified away by investing in both Team Internet and Greatland Gold 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 Team Internet and Greatland Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Team Internet Group and Greatland Gold plc, you can compare the effects of market volatilities on Team Internet and Greatland Gold 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 Team Internet with a short position of Greatland Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Team Internet and Greatland Gold.
Diversification Opportunities for Team Internet and Greatland Gold
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Team and Greatland is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Team Internet Group and Greatland Gold plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greatland Gold plc and Team Internet 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 Team Internet Group are associated (or correlated) with Greatland Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greatland Gold plc has no effect on the direction of Team Internet i.e., Team Internet and Greatland Gold go up and down completely randomly.
Pair Corralation between Team Internet and Greatland Gold
Assuming the 90 days trading horizon Team Internet Group is expected to generate 0.55 times more return on investment than Greatland Gold. However, Team Internet Group is 1.82 times less risky than Greatland Gold. It trades about 0.12 of its potential returns per unit of risk. Greatland Gold plc is currently generating about -0.15 per unit of risk. If you would invest 8,620 in Team Internet Group on October 7, 2024 and sell it today you would earn a total of 400.00 from holding Team Internet Group or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Team Internet Group vs. Greatland Gold plc
Performance |
| Timeline |
| Team Internet Group |
| Greatland Gold plc |
Team Internet and Greatland Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Team Internet and Greatland Gold
The main advantage of trading using opposite Team Internet and Greatland Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Team Internet position performs unexpectedly, Greatland Gold 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 Greatland Gold will offset losses from the drop in Greatland Gold's long position.| Team Internet vs. PPHE Hotel Group | Team Internet vs. Metro Bank PLC | Team Internet vs. United Airlines Holdings | Team Internet vs. Erste Group Bank |
| Greatland Gold vs. MediaZest plc | Greatland Gold vs. XLMedia PLC | Greatland Gold vs. Norman Broadbent Plc | Greatland Gold vs. Liberty Media Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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