Correlation Between United Internet and GVS SPA
Can any of the company-specific risk be diversified away by investing in both United Internet and GVS SPA 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 United Internet and GVS SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and GVS SPA, you can compare the effects of market volatilities on United Internet and GVS SPA 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 United Internet with a short position of GVS SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and GVS SPA.
Diversification Opportunities for United Internet and GVS SPA
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and GVS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and GVS SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GVS SPA and United Internet 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 United Internet AG are associated (or correlated) with GVS SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GVS SPA has no effect on the direction of United Internet i.e., United Internet and GVS SPA go up and down completely randomly.
Pair Corralation between United Internet and GVS SPA
Assuming the 90 days trading horizon United Internet AG is expected to generate 1.15 times more return on investment than GVS SPA. However, United Internet is 1.15 times more volatile than GVS SPA. It trades about 0.11 of its potential returns per unit of risk. GVS SPA is currently generating about -0.14 per unit of risk. If you would invest 1,597 in United Internet AG on December 5, 2024 and sell it today you would earn a total of 223.00 from holding United Internet AG or generate 13.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
United Internet AG vs. GVS SPA
Performance |
Timeline |
United Internet AG |
GVS SPA |
United Internet and GVS SPA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Internet and GVS SPA
The main advantage of trading using opposite United Internet and GVS SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, GVS SPA 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 GVS SPA will offset losses from the drop in GVS SPA's long position.United Internet vs. PLANT VEDA FOODS | United Internet vs. DaChan Food Limited | United Internet vs. Austevoll Seafood ASA | United Internet vs. Collins Foods Limited |
GVS SPA vs. Commercial Vehicle Group | GVS SPA vs. Emperor Entertainment Hotel | GVS SPA vs. MHP Hotel AG | GVS SPA vs. Sotherly Hotels |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |