This module allows you to analyze existing cross correlation between Gartner and Alphabet. You can compare the effects of market volatilities on Gartner and Alphabet 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 Gartner with a short position of Alphabet. See also your portfolio center. Please also check ongoing floating volatility patterns of Gartner and Alphabet.
Allowing for the 30-days total investment horizon, Gartner is expected to generate 0.65 times more return on investment than Alphabet. However, Gartner is 1.55 times less risky than Alphabet. It trades about 0.0 of its potential returns per unit of risk. Alphabet is currently generating about -0.13 per unit of risk. If you would invest 11,796 in Gartner on March 26, 2018 and sell it today you would lose (58.00) from holding Gartner or give up 0.49% of portfolio value over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Gartner Inc and Alphabet Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alphabet and Gartner 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 Gartner are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet has no effect on the direction of Gartner i.e. Gartner and Alphabet go up and down completely randomly.
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