Correlation Between Gaucho Group and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both Gaucho Group and Seritage Growth 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 Seritage Growth 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 Seritage Growth Properties, you can compare the effects of market volatilities on Gaucho Group and Seritage Growth 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 Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaucho Group and Seritage Growth.
Diversification Opportunities for Gaucho Group and Seritage Growth
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaucho and Seritage is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gaucho Group Holdings and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop 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 Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of Gaucho Group i.e., Gaucho Group and Seritage Growth go up and down completely randomly.
Pair Corralation between Gaucho Group and Seritage Growth
Given the investment horizon of 90 days Gaucho Group Holdings is expected to under-perform the Seritage Growth. In addition to that, Gaucho Group is 6.14 times more volatile than Seritage Growth Properties. It trades about -0.02 of its total potential returns per unit of risk. Seritage Growth Properties is currently generating about -0.06 per unit of volatility. If you would invest 1,195 in Seritage Growth Properties on August 27, 2024 and sell it today you would lose (770.00) from holding Seritage Growth Properties or give up 64.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaucho Group Holdings vs. Seritage Growth Properties
Performance |
| Timeline |
| Gaucho Group Holdings |
| Seritage Growth Prop |
Gaucho Group and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaucho Group and Seritage Growth
The main advantage of trading using opposite Gaucho Group and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaucho Group position performs unexpectedly, Seritage Growth 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 Seritage Growth will offset losses from the drop in Seritage Growth's long position.| Gaucho Group vs. Investcorp Credit Management | Gaucho Group vs. Medalist Diversified Reit | Gaucho Group vs. Aquagold International | Gaucho Group vs. Morningstar Unconstrained Allocation |
| Seritage Growth vs. Investcorp Credit Management | Seritage Growth vs. Medalist Diversified Reit | Seritage Growth vs. Aquagold International | Seritage Growth vs. Morningstar Unconstrained Allocation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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