Correlation Between Crosswood and Getlink SE

Can any of the company-specific risk be diversified away by investing in both Crosswood and Getlink SE 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 Crosswood and Getlink SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Crosswood and Getlink SE, you can compare the effects of market volatilities on Crosswood and Getlink SE 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 Crosswood with a short position of Getlink SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crosswood and Getlink SE.

Diversification Opportunities for Crosswood and Getlink SE

0.0

Correlation Coefficient

Crosswood  Getlink SE

Pay attention - limited upside

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

Pair Corralation between Crosswood and Getlink SE

If you would invest  0.00  in Crosswood on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Crosswood or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

Crosswood  vs.  Getlink SE

Crosswood

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crosswood has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Crosswood is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Getlink SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getlink SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Getlink SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Crosswood and Getlink SE

The main advantage of trading using opposite Crosswood and Getlink SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crosswood position performs unexpectedly, Getlink SE 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 Getlink SE will offset losses from the drop in Getlink SE's long position.

The idea behind Crosswood and Getlink SE 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.