Correlation Between G4S Plc and MSA Safety
Can any of the company-specific risk be diversified away by investing in both G4S Plc and MSA Safety 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 G4S Plc and MSA Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G4S Plc and MSA Safety, you can compare the effects of market volatilities on G4S Plc and MSA Safety 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 G4S Plc with a short position of MSA Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of G4S Plc and MSA Safety.
Diversification Opportunities for G4S Plc and MSA Safety
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between G4S and MSA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G4S Plc and MSA Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSA Safety and G4S Plc 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 G4S Plc are associated (or correlated) with MSA Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSA Safety has no effect on the direction of G4S Plc i.e., G4S Plc and MSA Safety go up and down completely randomly.
Pair Corralation between G4S Plc and MSA Safety
If you would invest 18,274 in MSA Safety on January 25, 2024 and sell it today you would earn a total of 730.00 from holding MSA Safety or generate 3.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
G4S Plc vs. MSA Safety
Performance |
Timeline |
G4S Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MSA Safety |
G4S Plc and MSA Safety Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G4S Plc and MSA Safety
The main advantage of trading using opposite G4S Plc and MSA Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G4S Plc position performs unexpectedly, MSA Safety 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 MSA Safety will offset losses from the drop in MSA Safety's long position.G4S Plc vs. Intchains Group Limited | G4S Plc vs. Advanced Micro Devices | G4S Plc vs. Qorvo Inc | G4S Plc vs. Taiwan Semiconductor Manufacturing |
MSA Safety vs. Allegion PLC | MSA Safety vs. Resideo Technologies | MSA Safety vs. NL Industries | MSA Safety vs. Brady |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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