Correlation Between Argen X and GIMV NV
Can any of the company-specific risk be diversified away by investing in both Argen X and GIMV NV 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 Argen X and GIMV NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argen X and GIMV NV, you can compare the effects of market volatilities on Argen X and GIMV NV 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 Argen X with a short position of GIMV NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argen X and GIMV NV.
Diversification Opportunities for Argen X and GIMV NV
Very good diversification
The 3 months correlation between Argen and GIMV is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Argen X and GIMV NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIMV NV and Argen X 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 Argen X are associated (or correlated) with GIMV NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIMV NV has no effect on the direction of Argen X i.e., Argen X and GIMV NV go up and down completely randomly.
Pair Corralation between Argen X and GIMV NV
Assuming the 90 days trading horizon Argen X is expected to generate 2.36 times more return on investment than GIMV NV. However, Argen X is 2.36 times more volatile than GIMV NV. It trades about 0.06 of its potential returns per unit of risk. GIMV NV is currently generating about 0.0 per unit of risk. If you would invest 32,610 in Argen X on December 2, 2024 and sell it today you would earn a total of 27,110 from holding Argen X or generate 83.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Argen X vs. GIMV NV
Performance |
Timeline |
Argen X |
GIMV NV |
Argen X and GIMV NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Argen X and GIMV NV
The main advantage of trading using opposite Argen X and GIMV NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argen X position performs unexpectedly, GIMV NV 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 GIMV NV will offset losses from the drop in GIMV NV's long position.The idea behind Argen X and GIMV NV 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.GIMV NV vs. Groep Brussel Lambert | GIMV NV vs. Ackermans Van Haaren | GIMV NV vs. Sofina Socit Anonyme | GIMV NV vs. Brederode 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |