Correlation Between Equinix and GOING PUBL

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

By analyzing existing cross correlation between Equinix and GOING PUBL MEDIA, you can compare the effects of market volatilities on Equinix and GOING PUBL 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 Equinix with a short position of GOING PUBL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and GOING PUBL.

Diversification Opportunities for Equinix and GOING PUBL

-0.84

Correlation Coefficient

Equinix  GOING PUBL

Pay attention - limited upside

The 3 months correlation between Equinix and GOING is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and GOING PUBL MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOING PUBL MEDIA and Equinix 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 Equinix are associated (or correlated) with GOING PUBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOING PUBL MEDIA has no effect on the direction of Equinix i.e., Equinix and GOING PUBL go up and down completely randomly.

Pair Corralation between Equinix and GOING PUBL

Assuming the 90 days trading horizon Equinix is expected to generate 0.74 times more return on investment than GOING PUBL. However, Equinix is 1.35 times less risky than GOING PUBL. It trades about 0.06 of its potential returns per unit of risk. GOING PUBL MEDIA is currently generating about -0.02 per unit of risk. If you would invest  73,124  in Equinix on October 3, 2024 and sell it today you would earn a total of  16,676  from holding Equinix or generate 22.81% return on investment over 90 days.

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

Equinix  vs.  GOING PUBL MEDIA

Equinix

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Equinix are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Equinix reported solid returns over the last few months and may actually be approaching a breakup point.

GOING PUBL MEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GOING PUBL MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Equinix and GOING PUBL

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

The idea behind Equinix and GOING PUBL MEDIA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.