Correlation Between GREATLAND GOLD and Dell Technologies

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

By analyzing existing cross correlation between GREATLAND GOLD PLC and Dell Technologies, you can compare the effects of market volatilities on GREATLAND GOLD and Dell Technologies 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 GREATLAND GOLD with a short position of Dell Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREATLAND GOLD and Dell Technologies.

Diversification Opportunities for GREATLAND GOLD and Dell Technologies

-0.65

Correlation Coefficient

GREATLAND GOLD  Dell Technologies

Excellent diversification

The 3 months correlation between GREATLAND and Dell is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding GREATLAND GOLD PLC and Dell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dell Technologies and GREATLAND GOLD 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 GREATLAND GOLD PLC are associated (or correlated) with Dell Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dell Technologies has no effect on the direction of GREATLAND GOLD i.e., GREATLAND GOLD and Dell Technologies go up and down completely randomly.

Pair Corralation between GREATLAND GOLD and Dell Technologies

Assuming the 90 days horizon GREATLAND GOLD PLC is expected to generate 4.02 times more return on investment than Dell Technologies. However, GREATLAND GOLD is 4.02 times more volatile than Dell Technologies. It trades about 0.15 of its potential returns per unit of risk. Dell Technologies is currently generating about -0.09 per unit of risk. If you would invest  6.00  in GREATLAND GOLD PLC on December 22, 2024 and sell it today you would earn a total of  6.00  from holding GREATLAND GOLD PLC or generate 100.0% return on investment over 90 days.

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

GREATLAND GOLD PLC  vs.  Dell Technologies

GREATLAND GOLD PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GREATLAND GOLD PLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, GREATLAND GOLD reported solid returns over the last few months and may actually be approaching a breakup point.

Dell Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dell Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with GREATLAND GOLD and Dell Technologies

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

The idea behind GREATLAND GOLD PLC and Dell Technologies 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.