Correlation Between White Pearl and Goobit Group
Can any of the company-specific risk be diversified away by investing in both White Pearl and Goobit Group 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 White Pearl and Goobit Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between White Pearl Technology and Goobit Group AB, you can compare the effects of market volatilities on White Pearl and Goobit Group 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 White Pearl with a short position of Goobit Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Pearl and Goobit Group.
Diversification Opportunities for White Pearl and Goobit Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between White and Goobit is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding White Pearl Technology and Goobit Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goobit Group AB and White Pearl 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 White Pearl Technology are associated (or correlated) with Goobit Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goobit Group AB has no effect on the direction of White Pearl i.e., White Pearl and Goobit Group go up and down completely randomly.
Pair Corralation between White Pearl and Goobit Group
Assuming the 90 days trading horizon White Pearl is expected to generate 1.4 times less return on investment than Goobit Group. But when comparing it to its historical volatility, White Pearl Technology is 2.05 times less risky than Goobit Group. It trades about 0.04 of its potential returns per unit of risk. Goobit Group AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Goobit Group AB on November 27, 2024 and sell it today you would lose (14.00) from holding Goobit Group AB or give up 51.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.38% |
| Values | Daily Returns |
White Pearl Technology vs. Goobit Group AB
Performance |
| Timeline |
| White Pearl Technology |
| Goobit Group AB |
White Pearl and Goobit Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Pearl and Goobit Group
The main advantage of trading using opposite White Pearl and Goobit Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Pearl position performs unexpectedly, Goobit Group 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 Goobit Group will offset losses from the drop in Goobit Group's long position.| White Pearl vs. Maven Wireless Sweden | White Pearl vs. G5 Entertainment publ | White Pearl vs. USWE Sports AB | White Pearl vs. MTI Investment SE |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |