Correlation Between Gabriel Holding and BankInvest Hojrentelande

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

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

Diversification Opportunities for Gabriel Holding and BankInvest Hojrentelande

-0.18

Correlation Coefficient

Gabriel Holding  BankInvest Hojrentelande

Good diversification

The 3 months correlation between Gabriel and BankInvest is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gabriel Holding and BankInvest Hojrentelande in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Hojrentelande and Gabriel Holding 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 Gabriel Holding are associated (or correlated) with BankInvest Hojrentelande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Hojrentelande has no effect on the direction of Gabriel Holding i.e., Gabriel Holding and BankInvest Hojrentelande go up and down completely randomly.

Pair Corralation between Gabriel Holding and BankInvest Hojrentelande

Assuming the 90 days trading horizon Gabriel Holding is expected to under-perform the BankInvest Hojrentelande. In addition to that, Gabriel Holding is 12.54 times more volatile than BankInvest Hojrentelande. It trades about -0.14 of its total potential returns per unit of risk. BankInvest Hojrentelande is currently generating about -0.02 per unit of volatility. If you would invest  5,304  in BankInvest Hojrentelande on October 8, 2024 and sell it today you would lose (18.00) from holding BankInvest Hojrentelande or give up 0.34% of portfolio value over 90 days.

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

Gabriel Holding  vs.  BankInvest Hojrentelande

Gabriel Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gabriel Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BankInvest Hojrentelande

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BankInvest Hojrentelande has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong primary indicators, BankInvest Hojrentelande is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gabriel Holding and BankInvest Hojrentelande

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

The idea behind Gabriel Holding and BankInvest Hojrentelande 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.