Correlation Between GEE and Vanguard FTSE
Can any of the company-specific risk be diversified away by investing in both GEE and Vanguard FTSE 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 GEE and Vanguard FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEE Group and Vanguard FTSE Europe, you can compare the effects of market volatilities on GEE and Vanguard FTSE 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 GEE with a short position of Vanguard FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEE and Vanguard FTSE.
Diversification Opportunities for GEE and Vanguard FTSE
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEE and Vanguard is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and Vanguard FTSE Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE Europe and GEE 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 GEE Group are associated (or correlated) with Vanguard FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE Europe has no effect on the direction of GEE i.e., GEE and Vanguard FTSE go up and down completely randomly.
Pair Corralation between GEE and Vanguard FTSE
Considering the 90-day investment horizon GEE Group is expected to under-perform the Vanguard FTSE. In addition to that, GEE is 3.67 times more volatile than Vanguard FTSE Europe. It trades about -0.02 of its total potential returns per unit of risk. Vanguard FTSE Europe is currently generating about 0.03 per unit of volatility. If you would invest 6,147 in Vanguard FTSE Europe on January 18, 2024 and sell it today you would earn a total of 298.00 from holding Vanguard FTSE Europe or generate 4.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
GEE Group vs. Vanguard FTSE Europe
Performance |
Timeline |
GEE Group |
Vanguard FTSE Europe |
GEE and Vanguard FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GEE and Vanguard FTSE
The main advantage of trading using opposite GEE and Vanguard FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEE position performs unexpectedly, Vanguard FTSE 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 Vanguard FTSE will offset losses from the drop in Vanguard FTSE's long position.GEE vs. Discount Print USA | GEE vs. Cass Information Systems | GEE vs. Civeo Corp | GEE vs. Network 1 Technologies |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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