Correlation Between HHG Capital and Global Partner

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

By analyzing existing cross correlation between HHG Capital and Global Partner Acquisition, you can compare the effects of market volatilities on HHG Capital and Global Partner 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 HHG Capital with a short position of Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of HHG Capital and Global Partner.

Diversification Opportunities for HHG Capital and Global Partner

-0.39

Correlation Coefficient

HHG Capital  Global Partner

Very good diversification

The 3 months correlation between HHG and Global is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding HHG Capital and Global Partner Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acqui and HHG Capital 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 HHG Capital are associated (or correlated) with Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acqui has no effect on the direction of HHG Capital i.e., HHG Capital and Global Partner go up and down completely randomly.

Pair Corralation between HHG Capital and Global Partner

If you would invest (100.00) in Global Partner Acquisition on September 18, 2024 and sell it today you would earn a total of  100.00  from holding Global Partner Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HHG Capital  vs.  Global Partner Acquisition

HHG Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HHG Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Global Partner Acqui

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Partner Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Global Partner is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with HHG Capital and Global Partner

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

The idea behind HHG Capital and Global Partner Acquisition 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.