Correlation Between Grande Asset and Begistics Public

Can any of the company-specific risk be diversified away by investing in both Grande Asset and Begistics Public 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 Grande Asset and Begistics Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grande Asset Hotels and Begistics Public, you can compare the effects of market volatilities on Grande Asset and Begistics Public 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 Grande Asset with a short position of Begistics Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and Begistics Public.

Diversification Opportunities for Grande Asset and Begistics Public

0.45

Correlation Coefficient

Grande Asset  Begistics Public

Very weak diversification

The 3 months correlation between Grande and Begistics is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and Begistics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Begistics Public and Grande Asset 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 Grande Asset Hotels are associated (or correlated) with Begistics Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Begistics Public has no effect on the direction of Grande Asset i.e., Grande Asset and Begistics Public go up and down completely randomly.

Pair Corralation between Grande Asset and Begistics Public

Assuming the 90 days trading horizon Grande Asset Hotels is expected to generate 1.83 times more return on investment than Begistics Public. However, Grande Asset is 1.83 times more volatile than Begistics Public. It trades about 0.0 of its potential returns per unit of risk. Begistics Public is currently generating about -0.06 per unit of risk. If you would invest  7.00  in Grande Asset Hotels on December 24, 2024 and sell it today you would lose (3.00) from holding Grande Asset Hotels or give up 42.86% of portfolio value over 90 days.

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

Grande Asset Hotels  vs.  Begistics Public

Grande Asset Hotels

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grande Asset Hotels has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Grande Asset is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Begistics Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Begistics Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Grande Asset and Begistics Public

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

The idea behind Grande Asset Hotels and Begistics Public 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.