Correlation Between Guaranty Trust and Grand Vision

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

By analyzing existing cross correlation between Guaranty Trust Holding and Grand Vision Media, you can compare the effects of market volatilities on Guaranty Trust and Grand Vision 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 Guaranty Trust with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guaranty Trust and Grand Vision.

Diversification Opportunities for Guaranty Trust and Grand Vision

0.0

Correlation Coefficient

Guaranty Trust  Grand Vision

Pay attention - limited upside

The 3 months correlation between Guaranty and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guaranty Trust Holding and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Guaranty Trust 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 Guaranty Trust Holding are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Guaranty Trust i.e., Guaranty Trust and Grand Vision go up and down completely randomly.

Pair Corralation between Guaranty Trust and Grand Vision

If you would invest  185.00  in Guaranty Trust Holding on December 24, 2024 and sell it today you would earn a total of  39.00  from holding Guaranty Trust Holding or generate 21.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Guaranty Trust Holding  vs.  Grand Vision Media

Guaranty Trust Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guaranty Trust Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, Guaranty Trust disclosed solid returns over the last few months and may actually be approaching a breakup point.

Grand Vision Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grand Vision is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Guaranty Trust and Grand Vision

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

The idea behind Guaranty Trust Holding and Grand Vision Media 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 Commodity Directory module to find actively traded commodities issued by global exchanges.