Correlation Between GGE Old and AMREP
Can any of the company-specific risk be diversified away by investing in both GGE Old and AMREP 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 GGE Old and AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GGE Old and AMREP, you can compare the effects of market volatilities on GGE Old and AMREP 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 GGE Old with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GGE Old and AMREP.
Diversification Opportunities for GGE Old and AMREP
Good diversification
The 3 months correlation between GGE and AMREP is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GGE Old and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and GGE Old 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 GGE Old are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of GGE Old i.e., GGE Old and AMREP go up and down completely randomly.
Pair Corralation between GGE Old and AMREP
If you would invest 3,083 in AMREP on October 26, 2024 and sell it today you would earn a total of 24.00 from holding AMREP or generate 0.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 5.56% |
Values | Daily Returns |
GGE Old vs. AMREP
Performance |
Timeline |
GGE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMREP |
GGE Old and AMREP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GGE Old and AMREP
The main advantage of trading using opposite GGE Old and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GGE Old position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.GGE Old vs. AMREP | GGE Old vs. Landsea Homes Corp | GGE Old vs. Forestar Group | GGE Old vs. American Realty Investors |
AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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