Correlation Between GGE Old and Five Point

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

By analyzing existing cross correlation between GGE Old and Five Point Holdings, you can compare the effects of market volatilities on GGE Old and Five Point 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 Five Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of GGE Old and Five Point.

Diversification Opportunities for GGE Old and Five Point

0.0

Correlation Coefficient

GGE Old  Five Point

Pay attention - limited upside

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

Pair Corralation between GGE Old and Five Point

If you would invest  379.00  in Five Point Holdings on December 17, 2024 and sell it today you would earn a total of  176.00  from holding Five Point Holdings or generate 46.44% return on investment over 90 days.

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

GGE Old  vs.  Five Point Holdings

GGE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days GGE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, GGE Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Five Point Holdings

Risk-Adjusted Performance

OK

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

Pair Trading with GGE Old and Five Point

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

The idea behind GGE Old and Five Point 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.