Correlation Between GDI Integrated and Akasha Wira
Can any of the company-specific risk be diversified away by investing in both GDI Integrated and Akasha Wira 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 GDI Integrated and Akasha Wira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDI Integrated and Akasha Wira International, you can compare the effects of market volatilities on GDI Integrated and Akasha Wira 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 GDI Integrated with a short position of Akasha Wira. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Integrated and Akasha Wira.
Diversification Opportunities for GDI Integrated and Akasha Wira
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GDI and Akasha is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GDI Integrated and Akasha Wira International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akasha Wira International and GDI Integrated 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 GDI Integrated are associated (or correlated) with Akasha Wira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akasha Wira International has no effect on the direction of GDI Integrated i.e., GDI Integrated and Akasha Wira go up and down completely randomly.
Pair Corralation between GDI Integrated and Akasha Wira
Assuming the 90 days trading horizon GDI Integrated is expected to generate 0.46 times more return on investment than Akasha Wira. However, GDI Integrated is 2.17 times less risky than Akasha Wira. It trades about 0.05 of its potential returns per unit of risk. Akasha Wira International is currently generating about 0.01 per unit of risk. If you would invest 3,775 in GDI Integrated on January 18, 2024 and sell it today you would earn a total of 135.00 from holding GDI Integrated or generate 3.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 84.13% |
Values | Daily Returns |
GDI Integrated vs. Akasha Wira International
Performance |
Timeline |
GDI Integrated |
Akasha Wira International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GDI Integrated and Akasha Wira Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GDI Integrated and Akasha Wira
The main advantage of trading using opposite GDI Integrated and Akasha Wira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDI Integrated position performs unexpectedly, Akasha Wira 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 Akasha Wira will offset losses from the drop in Akasha Wira's long position.GDI Integrated vs. Baylin Technologies | GDI Integrated vs. Kits Eyecare | GDI Integrated vs. Greenlane Renewables | GDI Integrated vs. Supremex |
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 Stocks Directory module to find actively traded stocks across global markets.
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