Correlation Between Workiva and Grindr
Can any of the company-specific risk be diversified away by investing in both Workiva and Grindr 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 Workiva and Grindr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workiva and Grindr Inc, you can compare the effects of market volatilities on Workiva and Grindr 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 Workiva with a short position of Grindr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workiva and Grindr.
Diversification Opportunities for Workiva and Grindr
Very poor diversification
The 3 months correlation between Workiva and Grindr is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Grindr Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindr Inc and Workiva 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 Workiva are associated (or correlated) with Grindr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindr Inc has no effect on the direction of Workiva i.e., Workiva and Grindr go up and down completely randomly.
Pair Corralation between Workiva and Grindr
Allowing for the 90-day total investment horizon Workiva is expected to generate 1.09 times more return on investment than Grindr. However, Workiva is 1.09 times more volatile than Grindr Inc. It trades about 0.41 of its potential returns per unit of risk. Grindr Inc is currently generating about 0.29 per unit of risk. If you would invest 7,867 in Workiva on August 24, 2024 and sell it today you would earn a total of 1,668 from holding Workiva or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workiva vs. Grindr Inc
Performance |
| Timeline |
| Workiva |
| Grindr Inc |
Workiva and Grindr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workiva and Grindr
The main advantage of trading using opposite Workiva and Grindr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva position performs unexpectedly, Grindr 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 Grindr will offset losses from the drop in Grindr's long position.| Workiva vs. Alkami Technology | Workiva vs. Paycor HCM | Workiva vs. Procore Technologies | Workiva vs. Enfusion |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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