Correlation Between VGI Public and Grand Prix
Can any of the company-specific risk be diversified away by investing in both VGI Public and Grand Prix 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 VGI Public and Grand Prix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGI Public and Grand Prix International, you can compare the effects of market volatilities on VGI Public and Grand Prix 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 VGI Public with a short position of Grand Prix. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGI Public and Grand Prix.
Diversification Opportunities for VGI Public and Grand Prix
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VGI and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VGI Public and Grand Prix International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Prix International and VGI Public 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 VGI Public are associated (or correlated) with Grand Prix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Prix International has no effect on the direction of VGI Public i.e., VGI Public and Grand Prix go up and down completely randomly.
Pair Corralation between VGI Public and Grand Prix
If you would invest 390.00 in VGI Public on January 13, 2025 and sell it today you would lose (180.00) from holding VGI Public or give up 46.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
VGI Public vs. Grand Prix International
Performance |
| Timeline |
| VGI Public |
| Grand Prix International |
Risk-Adjusted Performance
Weak
Weak | Strong |
VGI Public and Grand Prix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGI Public and Grand Prix
The main advantage of trading using opposite VGI Public and Grand Prix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGI Public position performs unexpectedly, Grand Prix 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 Grand Prix will offset losses from the drop in Grand Prix's long position.| VGI Public vs. PTT Public | VGI Public vs. CP ALL Public | VGI Public vs. Kasikornbank Public | VGI Public vs. Bangkok Bank PCL |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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