Correlation Between Gaucho Group and Global Net
Can any of the company-specific risk be diversified away by investing in both Gaucho 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 Gaucho 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 Gaucho Group Holdings and Global Net Lease, you can compare the effects of market volatilities on Gaucho 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 Gaucho Group with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaucho Group and Global Net.
Diversification Opportunities for Gaucho Group and Global Net
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaucho and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaucho Group Holdings 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 Gaucho 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 Gaucho Group Holdings 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 Gaucho Group i.e., Gaucho Group and Global Net go up and down completely randomly.
Pair Corralation between Gaucho Group and Global Net
If you would invest 2,190 in Global Net Lease on November 18, 2024 and sell it today you would earn a total of 11.00 from holding Global Net Lease or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Gaucho Group Holdings vs. Global Net Lease
Performance |
| Timeline |
| Gaucho Group Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Global Net Lease |
Gaucho Group and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaucho Group and Global Net
The main advantage of trading using opposite Gaucho Group and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaucho 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.The idea behind Gaucho Group Holdings and Global Net Lease pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Global Net vs. Modiv Inc | Global Net vs. Precinct Properties New | Global Net vs. Global Net Lease | Global Net vs. NexPoint Diversified Real |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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