Correlation Between Tesla and Grupo Gigante
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By analyzing existing cross correlation between Tesla Inc and Grupo Gigante S, you can compare the effects of market volatilities on Tesla and Grupo Gigante 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 Tesla with a short position of Grupo Gigante. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and Grupo Gigante.
Diversification Opportunities for Tesla and Grupo Gigante
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tesla and Grupo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc and Grupo Gigante S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Gigante S and Tesla 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 Tesla Inc are associated (or correlated) with Grupo Gigante. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Gigante S has no effect on the direction of Tesla i.e., Tesla and Grupo Gigante go up and down completely randomly.
Pair Corralation between Tesla and Grupo Gigante
Assuming the 90 days trading horizon Tesla Inc is expected to generate 2.12 times more return on investment than Grupo Gigante. However, Tesla is 2.12 times more volatile than Grupo Gigante S. It trades about 0.21 of its potential returns per unit of risk. Grupo Gigante S is currently generating about 0.15 per unit of risk. If you would invest 484,316 in Tesla Inc on September 23, 2024 and sell it today you would earn a total of 370,317 from holding Tesla Inc or generate 76.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Tesla Inc vs. Grupo Gigante S
Performance |
Timeline |
Tesla Inc |
Grupo Gigante S |
Tesla and Grupo Gigante Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tesla and Grupo Gigante
The main advantage of trading using opposite Tesla and Grupo Gigante positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla position performs unexpectedly, Grupo Gigante 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 Grupo Gigante will offset losses from the drop in Grupo Gigante's long position.Tesla vs. KB Home | Tesla vs. Grupo Sports World | Tesla vs. UnitedHealth Group Incorporated | Tesla vs. Ameriprise Financial |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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