Correlation Between GIMV NV and Quest For

Can any of the company-specific risk be diversified away by investing in both GIMV NV and Quest For 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 GIMV NV and Quest For into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GIMV NV and Quest For Growth, you can compare the effects of market volatilities on GIMV NV and Quest For 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 GIMV NV with a short position of Quest For. Check out your portfolio center. Please also check ongoing floating volatility patterns of GIMV NV and Quest For.

Diversification Opportunities for GIMV NV and Quest For

-0.75

Correlation Coefficient

GIMV NV  Quest For

Pay attention - limited upside

The 3 months correlation between GIMV and Quest is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding GIMV NV and Quest For Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quest For Growth and GIMV NV 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 GIMV NV are associated (or correlated) with Quest For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quest For Growth has no effect on the direction of GIMV NV i.e., GIMV NV and Quest For go up and down completely randomly.

Pair Corralation between GIMV NV and Quest For

Assuming the 90 days trading horizon GIMV NV is expected to under-perform the Quest For. In addition to that, GIMV NV is 1.01 times more volatile than Quest For Growth. It trades about -0.06 of its total potential returns per unit of risk. Quest For Growth is currently generating about 0.14 per unit of volatility. If you would invest  388.00  in Quest For Growth on December 4, 2024 and sell it today you would earn a total of  41.00  from holding Quest For Growth or generate 10.57% return on investment over 90 days.

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

GIMV NV  vs.  Quest For Growth

GIMV NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days GIMV NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GIMV NV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Quest For Growth

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quest For Growth are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Quest For may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GIMV NV and Quest For

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

The idea behind GIMV NV and Quest For Growth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..