Correlation Between GMP Property and Media Investment
Can any of the company-specific risk be diversified away by investing in both GMP Property and Media Investment 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 Media Investment 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 Media Investment Optimization, you can compare the effects of market volatilities on GMP Property and Media Investment 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 Media Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMP Property and Media Investment.
Diversification Opportunities for GMP Property and Media Investment
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GMP and Media is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding GMP Property SOCIMI and Media Investment Optimization in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Investment Opt 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 Media Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Investment Opt has no effect on the direction of GMP Property i.e., GMP Property and Media Investment go up and down completely randomly.
Pair Corralation between GMP Property and Media Investment
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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMP Property SOCIMI vs. Media Investment Optimization
Performance |
| Timeline |
| GMP Property SOCIMI |
| Media Investment Opt |
GMP Property and Media Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMP Property and Media Investment
The main advantage of trading using opposite GMP Property and Media Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMP Property position performs unexpectedly, Media Investment 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 Media Investment will offset losses from the drop in Media Investment's long position.| GMP Property vs. Inhome Prime Properties | GMP Property vs. International Consolidated Airlines | GMP Property vs. Ebro Foods | GMP Property vs. Home Capital Rentals |
| Media Investment vs. Metrovacesa SA | Media Investment vs. Elecnor SA | Media Investment vs. Mapfre | Media Investment vs. Amper 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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