Correlation Between GGE Old and Landsea Homes
Can any of the company-specific risk be diversified away by investing in both GGE Old and Landsea Homes 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 Landsea Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GGE Old and Landsea Homes Corp, you can compare the effects of market volatilities on GGE Old and Landsea Homes 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 Landsea Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of GGE Old and Landsea Homes.
Diversification Opportunities for GGE Old and Landsea Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GGE and Landsea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GGE Old and Landsea Homes Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landsea Homes Corp 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 Landsea Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landsea Homes Corp has no effect on the direction of GGE Old i.e., GGE Old and Landsea Homes go up and down completely randomly.
Pair Corralation between GGE Old and Landsea Homes
If you would invest (100.00) in GGE Old on December 18, 2024 and sell it today you would earn a total of 100.00 from holding GGE Old or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
GGE Old vs. Landsea Homes Corp
Performance |
Timeline |
GGE Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Landsea Homes Corp |
GGE Old and Landsea Homes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GGE Old and Landsea Homes
The main advantage of trading using opposite GGE Old and Landsea Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GGE Old position performs unexpectedly, Landsea Homes 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 Landsea Homes will offset losses from the drop in Landsea Homes' long position.GGE Old vs. AMREP | GGE Old vs. Landsea Homes Corp | GGE Old vs. Forestar Group | GGE Old vs. American Realty Investors |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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