Correlation Between GMP Property and Libertas 7
Can any of the company-specific risk be diversified away by investing in both GMP Property and Libertas 7 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 Libertas 7 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 Libertas 7 SA, you can compare the effects of market volatilities on GMP Property and Libertas 7 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 Libertas 7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMP Property and Libertas 7.
Diversification Opportunities for GMP Property and Libertas 7
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GMP and Libertas is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GMP Property SOCIMI and Libertas 7 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libertas 7 SA 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 Libertas 7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libertas 7 SA has no effect on the direction of GMP Property i.e., GMP Property and Libertas 7 go up and down completely randomly.
Pair Corralation between GMP Property and Libertas 7
Assuming the 90 days trading horizon GMP Property is expected to generate 2.13 times less return on investment than Libertas 7. In addition to that, GMP Property is 1.17 times more volatile than Libertas 7 SA. It trades about 0.03 of its total potential returns per unit of risk. Libertas 7 SA is currently generating about 0.06 per unit of volatility. If you would invest 89.00 in Libertas 7 SA on October 13, 2024 and sell it today you would earn a total of 83.00 from holding Libertas 7 SA or generate 93.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.02% |
| Values | Daily Returns |
GMP Property SOCIMI vs. Libertas 7 SA
Performance |
| Timeline |
| GMP Property SOCIMI |
| Libertas 7 SA |
GMP Property and Libertas 7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMP Property and Libertas 7
The main advantage of trading using opposite GMP Property and Libertas 7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMP Property position performs unexpectedly, Libertas 7 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 Libertas 7 will offset losses from the drop in Libertas 7's long position.| GMP Property vs. International Consolidated Airlines | GMP Property vs. Cellnex Telecom SA | GMP Property vs. Techo Hogar SOCIMI, | GMP Property vs. Atresmedia Corporacin de |
| Libertas 7 vs. Parlem Telecom Companyia | Libertas 7 vs. Ebro Foods | Libertas 7 vs. Borges Agricultural Industrial | Libertas 7 vs. Plasticos Compuestos SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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