Correlation Between Evolving Systems and Grab Holdings

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

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

Diversification Opportunities for Evolving Systems and Grab Holdings

0.0

Correlation Coefficient

Evolving Systems  Grab Holdings

Pay attention - limited upside

The 3 months correlation between Evolving and Grab is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evolving Systems and Grab Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings and Evolving Systems 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 Evolving Systems are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings has no effect on the direction of Evolving Systems i.e., Evolving Systems and Grab Holdings go up and down completely randomly.

Pair Corralation between Evolving Systems and Grab Holdings

If you would invest  476.00  in Grab Holdings on December 29, 2024 and sell it today you would lose (19.00) from holding Grab Holdings or give up 3.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evolving Systems  vs.  Grab Holdings

Evolving Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolving Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Evolving Systems is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Grab Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grab Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Grab Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Evolving Systems and Grab Holdings

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

The idea behind Evolving Systems and Grab Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.