Correlation Between Gateway Real and Greenland Hong
Can any of the company-specific risk be diversified away by investing in both Gateway Real and Greenland Hong 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 Gateway Real and Greenland Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Real Estate and Greenland Hong Kong, you can compare the effects of market volatilities on Gateway Real and Greenland Hong 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 Gateway Real with a short position of Greenland Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Real and Greenland Hong.
Diversification Opportunities for Gateway Real and Greenland Hong
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gateway and Greenland is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Real Estate and Greenland Hong Kong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Hong Kong and Gateway Real 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 Gateway Real Estate are associated (or correlated) with Greenland Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Hong Kong has no effect on the direction of Gateway Real i.e., Gateway Real and Greenland Hong go up and down completely randomly.
Pair Corralation between Gateway Real and Greenland Hong
Assuming the 90 days horizon Gateway Real Estate is expected to under-perform the Greenland Hong. But the stock apears to be less risky and, when comparing its historical volatility, Gateway Real Estate is 1.03 times less risky than Greenland Hong. The stock trades about -0.2 of its potential returns per unit of risk. The Greenland Hong Kong is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2.85 in Greenland Hong Kong on September 23, 2024 and sell it today you would lose (0.05) from holding Greenland Hong Kong or give up 1.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gateway Real Estate vs. Greenland Hong Kong
Performance |
Timeline |
Gateway Real Estate |
Greenland Hong Kong |
Gateway Real and Greenland Hong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gateway Real and Greenland Hong
The main advantage of trading using opposite Gateway Real and Greenland Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Real position performs unexpectedly, Greenland Hong 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 Greenland Hong will offset losses from the drop in Greenland Hong's long position.Gateway Real vs. Deutsche Wohnen SE | Gateway Real vs. Gateway Real Estate | Gateway Real vs. TIMES CHINA HLDGS | Gateway Real vs. LANDSEA HOMES P |
Greenland Hong vs. Deutsche Wohnen SE | Greenland Hong vs. Gateway Real Estate | Greenland Hong vs. Gateway Real Estate | Greenland Hong vs. TIMES CHINA HLDGS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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