Correlation Between GRG Banking and Lander Sports

Can any of the company-specific risk be diversified away by investing in both GRG Banking and Lander Sports 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 GRG Banking and Lander Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GRG Banking Equipment and Lander Sports Development, you can compare the effects of market volatilities on GRG Banking and Lander Sports 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 GRG Banking with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Lander Sports.

Diversification Opportunities for GRG Banking and Lander Sports

0.05

Correlation Coefficient

GRG Banking  Lander Sports

Significant diversification

The 3 months correlation between GRG and Lander is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of GRG Banking i.e., GRG Banking and Lander Sports go up and down completely randomly.

Pair Corralation between GRG Banking and Lander Sports

Assuming the 90 days trading horizon GRG Banking is expected to generate 1.79 times less return on investment than Lander Sports. But when comparing it to its historical volatility, GRG Banking Equipment is 1.14 times less risky than Lander Sports. It trades about 0.06 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  327.00  in Lander Sports Development on December 26, 2024 and sell it today you would earn a total of  56.00  from holding Lander Sports Development or generate 17.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GRG Banking Equipment  vs.  Lander Sports Development

GRG Banking Equipment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GRG Banking Equipment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, GRG Banking may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Lander Sports Development

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lander Sports Development are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Lander Sports sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GRG Banking and Lander Sports

The main advantage of trading using opposite GRG Banking and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.

The idea behind GRG Banking Equipment and Lander Sports Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.