Correlation Between Getabec Public and Information

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

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

Diversification Opportunities for Getabec Public and Information

0.35

Correlation Coefficient

Getabec Public  Information

Weak diversification

The 3 months correlation between Getabec and Information is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Getabec Public and Information and Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information and Comm and Getabec Public 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 Getabec Public are associated (or correlated) with Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information and Comm has no effect on the direction of Getabec Public i.e., Getabec Public and Information go up and down completely randomly.

Pair Corralation between Getabec Public and Information

Assuming the 90 days trading horizon Getabec Public is expected to generate 0.87 times more return on investment than Information. However, Getabec Public is 1.15 times less risky than Information. It trades about 0.01 of its potential returns per unit of risk. Information and Communication is currently generating about -0.02 per unit of risk. If you would invest  75.00  in Getabec Public on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Getabec Public or generate 0.0% return on investment over 90 days.

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

Getabec Public  vs.  Information and Communication

Getabec Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getabec Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Getabec Public is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Information and Comm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Information and Communication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Information is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Getabec Public and Information

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

The idea behind Getabec Public and Information and Communication 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 Transaction History module to view history of all your transactions and understand their impact on performance.