Correlation Between Triad Group and Global Net
Can any of the company-specific risk be diversified away by investing in both Triad Group and Global Net 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 Triad Group and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Global Net Lease, you can compare the effects of market volatilities on Triad Group and Global Net 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 Triad Group with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Global Net.
Diversification Opportunities for Triad Group and Global Net
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Triad and Global is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Triad Group 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 Triad Group PLC are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Triad Group i.e., Triad Group and Global Net go up and down completely randomly.
Pair Corralation between Triad Group and Global Net
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 0.78 times more return on investment than Global Net. However, Triad Group PLC is 1.29 times less risky than Global Net. It trades about 0.09 of its potential returns per unit of risk. Global Net Lease is currently generating about 0.0 per unit of risk. If you would invest 14,828 in Triad Group PLC on September 12, 2024 and sell it today you would earn a total of 14,172 from holding Triad Group PLC or generate 95.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Triad Group PLC vs. Global Net Lease
Performance |
| Timeline |
| Triad Group PLC |
| Global Net Lease |
Triad Group and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Global Net
The main advantage of trading using opposite Triad Group and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Triad Group vs. Melia Hotels | Triad Group vs. Orient Telecoms | Triad Group vs. Batm Advanced Communications | Triad Group vs. InterContinental Hotels Group |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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