Correlation Between Global Power and Ratch Group
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By analyzing existing cross correlation between Global Power Synergy and Ratch Group Public, you can compare the effects of market volatilities on Global Power and Ratch Group 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 Global Power with a short position of Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Power and Ratch Group.
Diversification Opportunities for Global Power and Ratch Group
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Ratch is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Global Power Synergy and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group Public and Global Power 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 Global Power Synergy are associated (or correlated) with Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of Global Power i.e., Global Power and Ratch Group go up and down completely randomly.
Pair Corralation between Global Power and Ratch Group
Assuming the 90 days trading horizon Global Power Synergy is expected to under-perform the Ratch Group. But the stock apears to be less risky and, when comparing its historical volatility, Global Power Synergy is 62.6 times less risky than Ratch Group. The stock trades about -0.14 of its potential returns per unit of risk. The Ratch Group Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,612 in Ratch Group Public on September 25, 2024 and sell it today you would lose (612.00) from holding Ratch Group Public or give up 16.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Global Power Synergy vs. Ratch Group Public
Performance |
Timeline |
Global Power Synergy |
Ratch Group Public |
Global Power and Ratch Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Power and Ratch Group
The main advantage of trading using opposite Global Power and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Power position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group's long position.Global Power vs. Ratch Group Public | Global Power vs. BTS Group Holdings | Global Power vs. PTG Energy PCL |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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