Correlation Between GQG Partners and Ragnar Metals

Can any of the company-specific risk be diversified away by investing in both GQG Partners and Ragnar Metals 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 GQG Partners and Ragnar Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GQG Partners DRC and Ragnar Metals, you can compare the effects of market volatilities on GQG Partners and Ragnar Metals 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 GQG Partners with a short position of Ragnar Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GQG Partners and Ragnar Metals.

Diversification Opportunities for GQG Partners and Ragnar Metals

0.19

Correlation Coefficient

GQG Partners  Ragnar Metals

Average diversification

The 3 months correlation between GQG and Ragnar is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GQG Partners DRC and Ragnar Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ragnar Metals and GQG Partners 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 GQG Partners DRC are associated (or correlated) with Ragnar Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ragnar Metals has no effect on the direction of GQG Partners i.e., GQG Partners and Ragnar Metals go up and down completely randomly.

Pair Corralation between GQG Partners and Ragnar Metals

Assuming the 90 days trading horizon GQG Partners DRC is expected to under-perform the Ragnar Metals. But the stock apears to be less risky and, when comparing its historical volatility, GQG Partners DRC is 1.22 times less risky than Ragnar Metals. The stock trades about -0.05 of its potential returns per unit of risk. The Ragnar Metals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.90  in Ragnar Metals on August 31, 2024 and sell it today you would earn a total of  0.20  from holding Ragnar Metals or generate 10.53% return on investment over 90 days.

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

GQG Partners DRC  vs.  Ragnar Metals

GQG Partners DRC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GQG Partners DRC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Ragnar Metals

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ragnar Metals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Ragnar Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GQG Partners and Ragnar Metals

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

The idea behind GQG Partners DRC and Ragnar Metals 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.