Correlation Between Gfinity PLC and Integrated Diagnostics
Can any of the company-specific risk be diversified away by investing in both Gfinity PLC and Integrated Diagnostics 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 Gfinity PLC and Integrated Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gfinity PLC and Integrated Diagnostics Holdings, you can compare the effects of market volatilities on Gfinity PLC and Integrated Diagnostics 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 Gfinity PLC with a short position of Integrated Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gfinity PLC and Integrated Diagnostics.
Diversification Opportunities for Gfinity PLC and Integrated Diagnostics
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gfinity and Integrated is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gfinity PLC and Integrated Diagnostics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Diagnostics and Gfinity 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 Gfinity PLC are associated (or correlated) with Integrated Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Diagnostics has no effect on the direction of Gfinity PLC i.e., Gfinity PLC and Integrated Diagnostics go up and down completely randomly.
Pair Corralation between Gfinity PLC and Integrated Diagnostics
Assuming the 90 days trading horizon Gfinity PLC is expected to generate 3.07 times more return on investment than Integrated Diagnostics. However, Gfinity PLC is 3.07 times more volatile than Integrated Diagnostics Holdings. It trades about 0.11 of its potential returns per unit of risk. Integrated Diagnostics Holdings is currently generating about 0.09 per unit of risk. If you would invest 2.50 in Gfinity PLC on September 24, 2024 and sell it today you would earn a total of 3.25 from holding Gfinity PLC or generate 130.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gfinity PLC vs. Integrated Diagnostics Holding
Performance |
Timeline |
Gfinity PLC |
Integrated Diagnostics |
Gfinity PLC and Integrated Diagnostics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gfinity PLC and Integrated Diagnostics
The main advantage of trading using opposite Gfinity PLC and Integrated Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gfinity PLC position performs unexpectedly, Integrated Diagnostics 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 Integrated Diagnostics will offset losses from the drop in Integrated Diagnostics' long position.Gfinity PLC vs. Synthomer plc | Gfinity PLC vs. Trainline Plc | Gfinity PLC vs. Fresenius Medical Care | Gfinity PLC vs. DFS Furniture PLC |
Integrated Diagnostics vs. Tungsten West PLC | Integrated Diagnostics vs. Argo Group Limited | Integrated Diagnostics vs. Hardide PLC | Integrated Diagnostics vs. Gfinity PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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