Correlation Between GPS Old and Mr Price
Can any of the company-specific risk be diversified away by investing in both GPS Old and Mr Price 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 GPS Old and Mr Price into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GPS Old and Mr Price Group, you can compare the effects of market volatilities on GPS Old and Mr Price 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 GPS Old with a short position of Mr Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of GPS Old and Mr Price.
Diversification Opportunities for GPS Old and Mr Price
Excellent diversification
The 3 months correlation between GPS and MRPLY is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GPS Old and Mr Price Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr Price Group and GPS 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 GPS Old are associated (or correlated) with Mr Price. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr Price Group has no effect on the direction of GPS Old i.e., GPS Old and Mr Price go up and down completely randomly.
Pair Corralation between GPS Old and Mr Price
If you would invest 2,328 in GPS Old on October 24, 2024 and sell it today you would earn a total of 0.00 from holding GPS Old or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.22% |
Values | Daily Returns |
GPS Old vs. Mr Price Group
Performance |
Timeline |
GPS Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mr Price Group |
GPS Old and Mr Price Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GPS Old and Mr Price
The main advantage of trading using opposite GPS Old and Mr Price positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GPS Old position performs unexpectedly, Mr Price 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 Mr Price will offset losses from the drop in Mr Price's long position.GPS Old vs. Abercrombie Fitch | GPS Old vs. Urban Outfitters | GPS Old vs. Foot Locker | GPS Old vs. Childrens Place |
Mr Price vs. Nedbank Group | Mr Price vs. Shoprite Holdings Ltd | Mr Price vs. Ryohin Keikaku Co | Mr Price vs. Sanlam Ltd PK |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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