Correlation Between Globalink Investment and NFT

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

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

Diversification Opportunities for Globalink Investment and NFT

0.15

Correlation Coefficient

Globalink Investment  NFT

Average diversification

The 3 months correlation between Globalink and NFT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Globalink Investment Rights and NFT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFT Limited and Globalink Investment 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 Globalink Investment Rights are associated (or correlated) with NFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFT Limited has no effect on the direction of Globalink Investment i.e., Globalink Investment and NFT go up and down completely randomly.

Pair Corralation between Globalink Investment and NFT

Assuming the 90 days horizon Globalink Investment Rights is expected to generate 19.35 times more return on investment than NFT. However, Globalink Investment is 19.35 times more volatile than NFT Limited. It trades about 0.21 of its potential returns per unit of risk. NFT Limited is currently generating about 0.11 per unit of risk. If you would invest  16.00  in Globalink Investment Rights on September 5, 2024 and sell it today you would lose (1.00) from holding Globalink Investment Rights or give up 6.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	28.13%
Values	Daily Returns

Globalink Investment Rights  vs.  NFT Limited

Globalink Investment

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Globalink Investment Rights has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively inconsistent forward indicators, Globalink Investment reported solid returns over the last few months and may actually be approaching a breakup point.

NFT Limited

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NFT Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, NFT demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Globalink Investment and NFT

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

The idea behind Globalink Investment Rights and NFT Limited 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.