Correlation Between Gigas Hosting and Miquel Y
Can any of the company-specific risk be diversified away by investing in both Gigas Hosting and Miquel Y 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 Gigas Hosting and Miquel Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigas Hosting SA and Miquel y Costas, you can compare the effects of market volatilities on Gigas Hosting and Miquel Y 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 Gigas Hosting with a short position of Miquel Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigas Hosting and Miquel Y.
Diversification Opportunities for Gigas Hosting and Miquel Y
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gigas and Miquel is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gigas Hosting SA and Miquel y Costas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miquel y Costas and Gigas Hosting 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 Gigas Hosting SA are associated (or correlated) with Miquel Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miquel y Costas has no effect on the direction of Gigas Hosting i.e., Gigas Hosting and Miquel Y go up and down completely randomly.
Pair Corralation between Gigas Hosting and Miquel Y
Assuming the 90 days trading horizon Gigas Hosting SA is expected to under-perform the Miquel Y. In addition to that, Gigas Hosting is 1.92 times more volatile than Miquel y Costas. It trades about -0.1 of its total potential returns per unit of risk. Miquel y Costas is currently generating about 0.06 per unit of volatility. If you would invest 1,265 in Miquel y Costas on December 29, 2024 and sell it today you would earn a total of 50.00 from holding Miquel y Costas or generate 3.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gigas Hosting SA vs. Miquel y Costas
Performance |
Timeline |
Gigas Hosting SA |
Miquel y Costas |
Gigas Hosting and Miquel Y Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gigas Hosting and Miquel Y
The main advantage of trading using opposite Gigas Hosting and Miquel Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigas Hosting position performs unexpectedly, Miquel Y 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 Miquel Y will offset losses from the drop in Miquel Y's long position.Gigas Hosting vs. Aedas Homes SL | Gigas Hosting vs. Ebro Foods | Gigas Hosting vs. Biotechnology Assets SA | Gigas Hosting vs. Techo Hogar SOCIMI, |
Miquel Y vs. Vidrala SA | Miquel Y vs. Grupo Catalana Occidente | Miquel Y vs. Iberpapel Gestion SA | Miquel Y vs. Cia de Distribucion |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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