Correlation Between GMP Property and Ebro Foods
Can any of the company-specific risk be diversified away by investing in both GMP Property and Ebro Foods 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 GMP Property and Ebro Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMP Property SOCIMI and Ebro Foods, you can compare the effects of market volatilities on GMP Property and Ebro Foods 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 GMP Property with a short position of Ebro Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMP Property and Ebro Foods.
Diversification Opportunities for GMP Property and Ebro Foods
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GMP and Ebro is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GMP Property SOCIMI and Ebro Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebro Foods and GMP Property 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 GMP Property SOCIMI are associated (or correlated) with Ebro Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebro Foods has no effect on the direction of GMP Property i.e., GMP Property and Ebro Foods go up and down completely randomly.
Pair Corralation between GMP Property and Ebro Foods
If you would invest 6,600 in GMP Property SOCIMI on August 28, 2024 and sell it today you would earn a total of 0.00 from holding GMP Property SOCIMI or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GMP Property SOCIMI vs. Ebro Foods
Performance |
| Timeline |
| GMP Property SOCIMI |
| Ebro Foods |
GMP Property and Ebro Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMP Property and Ebro Foods
The main advantage of trading using opposite GMP Property and Ebro Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMP Property position performs unexpectedly, Ebro Foods 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 Ebro Foods will offset losses from the drop in Ebro Foods' long position.| GMP Property vs. Bankinter | GMP Property vs. Caixabank SA | GMP Property vs. Atresmedia Corporacin de | GMP Property vs. Aedas Homes SL |
| Ebro Foods vs. Viscofan | Ebro Foods vs. Enags SA | Ebro Foods vs. Mapfre | Ebro Foods vs. Cia de Distribucion |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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