Correlation Between VERB TECHNOLOGY and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both VERB TECHNOLOGY and Grab Holdings 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 VERB TECHNOLOGY and Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VERB TECHNOLOGY PANY and Grab Holdings Limited, you can compare the effects of market volatilities on VERB TECHNOLOGY and Grab Holdings 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 VERB TECHNOLOGY with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of VERB TECHNOLOGY and Grab Holdings.
Diversification Opportunities for VERB TECHNOLOGY and Grab Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VERB and Grab is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding VERB TECHNOLOGY PANY and Grab Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings Limited and VERB TECHNOLOGY 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 VERB TECHNOLOGY PANY are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings Limited has no effect on the direction of VERB TECHNOLOGY i.e., VERB TECHNOLOGY and Grab Holdings go up and down completely randomly.
Pair Corralation between VERB TECHNOLOGY and Grab Holdings
Given the investment horizon of 90 days VERB TECHNOLOGY is expected to generate 5.12 times less return on investment than Grab Holdings. In addition to that, VERB TECHNOLOGY is 1.96 times more volatile than Grab Holdings Limited. It trades about 0.01 of its total potential returns per unit of risk. Grab Holdings Limited is currently generating about 0.09 per unit of volatility. If you would invest 17.00 in Grab Holdings Limited on August 24, 2024 and sell it today you would earn a total of 33.00 from holding Grab Holdings Limited or generate 194.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VERB TECHNOLOGY PANY vs. Grab Holdings Limited
Performance |
| Timeline |
| VERB TECHNOLOGY PANY |
| Grab Holdings Limited |
VERB TECHNOLOGY and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VERB TECHNOLOGY and Grab Holdings
The main advantage of trading using opposite VERB TECHNOLOGY and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VERB TECHNOLOGY position performs unexpectedly, Grab Holdings 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| VERB TECHNOLOGY vs. Trust Stamp | VERB TECHNOLOGY vs. Freight Technologies | VERB TECHNOLOGY vs. Versus Systems | VERB TECHNOLOGY vs. Auddia Inc |
| Grab Holdings vs. Grab Holdings | Grab Holdings vs. EVgo Equity Warrants | Grab Holdings vs. Bakkt Holdings Warrant |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |