Correlation Between TINC Comm and GIMV NV

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

By analyzing existing cross correlation between TINC Comm VA and GIMV NV, you can compare the effects of market volatilities on TINC Comm and GIMV NV 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 TINC Comm with a short position of GIMV NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of TINC Comm and GIMV NV.

Diversification Opportunities for TINC Comm and GIMV NV

0.56

Correlation Coefficient

TINC Comm  GIMV NV

Very weak diversification

The 3 months correlation between TINC and GIMV is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding TINC Comm VA and GIMV NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIMV NV and TINC Comm 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 TINC Comm VA are associated (or correlated) with GIMV NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIMV NV has no effect on the direction of TINC Comm i.e., TINC Comm and GIMV NV go up and down completely randomly.

Pair Corralation between TINC Comm and GIMV NV

Assuming the 90 days trading horizon TINC Comm VA is expected to under-perform the GIMV NV. But the stock apears to be less risky and, when comparing its historical volatility, TINC Comm VA is 2.67 times less risky than GIMV NV. The stock trades about -0.15 of its potential returns per unit of risk. The GIMV NV is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  3,745  in GIMV NV on September 17, 2024 and sell it today you would earn a total of  235.00  from holding GIMV NV or generate 6.28% return on investment over 90 days.

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

TINC Comm VA  vs.  GIMV NV

TINC Comm VA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TINC Comm VA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

GIMV NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GIMV NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with TINC Comm and GIMV NV

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

The idea behind TINC Comm VA and GIMV NV 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.