Correlation Between Garmin and RoboGroup TEK

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Can any of the company-specific risk be diversified away by investing in both Garmin and RoboGroup TEK 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 Garmin and RoboGroup TEK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garmin and RoboGroup TEK, you can compare the effects of market volatilities on Garmin and RoboGroup TEK 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 Garmin with a short position of RoboGroup TEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garmin and RoboGroup TEK.

Diversification Opportunities for Garmin and RoboGroup TEK

  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Garmin and RoboGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Garmin and RoboGroup TEK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoboGroup TEK and Garmin 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 Garmin are associated (or correlated) with RoboGroup TEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoboGroup TEK has no effect on the direction of Garmin i.e., Garmin and RoboGroup TEK go up and down completely randomly.

Pair Corralation between Garmin and RoboGroup TEK

If you would invest  0.01  in RoboGroup TEK on March 21, 2024 and sell it today you would earn a total of  0.00  from holding RoboGroup TEK or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
ValuesDaily Returns

Garmin  vs.  RoboGroup TEK


Risk-Adjusted Performance

6 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Garmin are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Garmin may actually be approaching a critical reversion point that can send shares even higher in July 2024.
RoboGroup TEK 

Risk-Adjusted Performance

0 of 100

Very Weak
Over the last 90 days RoboGroup TEK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, RoboGroup TEK is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Garmin and RoboGroup TEK Volatility Contrast

   Predicted Return Density   

Pair Trading with Garmin and RoboGroup TEK

The main advantage of trading using opposite Garmin and RoboGroup TEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garmin position performs unexpectedly, RoboGroup TEK 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 RoboGroup TEK will offset losses from the drop in RoboGroup TEK's long position.
The idea behind Garmin and RoboGroup TEK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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