Correlation Between Exotic Food and GMM Grammy
Can any of the company-specific risk be diversified away by investing in both Exotic Food and GMM Grammy 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 Exotic Food and GMM Grammy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exotic Food Public and GMM Grammy Public, you can compare the effects of market volatilities on Exotic Food and GMM Grammy 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 Exotic Food with a short position of GMM Grammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exotic Food and GMM Grammy.
Diversification Opportunities for Exotic Food and GMM Grammy
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exotic and GMM is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Exotic Food Public and GMM Grammy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMM Grammy Public and Exotic Food 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 Exotic Food Public are associated (or correlated) with GMM Grammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMM Grammy Public has no effect on the direction of Exotic Food i.e., Exotic Food and GMM Grammy go up and down completely randomly.
Pair Corralation between Exotic Food and GMM Grammy
Assuming the 90 days horizon Exotic Food Public is expected to generate 0.73 times more return on investment than GMM Grammy. However, Exotic Food Public is 1.38 times less risky than GMM Grammy. It trades about -0.06 of its potential returns per unit of risk. GMM Grammy Public is currently generating about -0.22 per unit of risk. If you would invest 1,860 in Exotic Food Public on November 29, 2024 and sell it today you would lose (60.00) from holding Exotic Food Public or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exotic Food Public vs. GMM Grammy Public
Performance |
| Timeline |
| Exotic Food Public |
| GMM Grammy Public |
Exotic Food and GMM Grammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exotic Food and GMM Grammy
The main advantage of trading using opposite Exotic Food and GMM Grammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exotic Food position performs unexpectedly, GMM Grammy 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 GMM Grammy will offset losses from the drop in GMM Grammy's long position.| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart Public |
| GMM Grammy vs. Global Green Chemicals | GMM Grammy vs. Silicon Craft Technology | GMM Grammy vs. Patrangsit Healthcare Group | GMM Grammy vs. Sri panwa Hospitality |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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