Correlation Between OPEN HOUSE and GuocoLand
Can any of the company-specific risk be diversified away by investing in both OPEN HOUSE and GuocoLand 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 OPEN HOUSE and GuocoLand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPEN HOUSE GROUP and GuocoLand Limited, you can compare the effects of market volatilities on OPEN HOUSE and GuocoLand 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 OPEN HOUSE with a short position of GuocoLand. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPEN HOUSE and GuocoLand.
Diversification Opportunities for OPEN HOUSE and GuocoLand
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between OPEN and GuocoLand is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding OPEN HOUSE GROUP and GuocoLand Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuocoLand Limited and OPEN HOUSE 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 OPEN HOUSE GROUP are associated (or correlated) with GuocoLand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuocoLand Limited has no effect on the direction of OPEN HOUSE i.e., OPEN HOUSE and GuocoLand go up and down completely randomly.
Pair Corralation between OPEN HOUSE and GuocoLand
Assuming the 90 days horizon OPEN HOUSE GROUP is expected to under-perform the GuocoLand. In addition to that, OPEN HOUSE is 2.49 times more volatile than GuocoLand Limited. It trades about -0.03 of its total potential returns per unit of risk. GuocoLand Limited is currently generating about 0.13 per unit of volatility. If you would invest 99.00 in GuocoLand Limited on September 23, 2024 and sell it today you would earn a total of 6.00 from holding GuocoLand Limited or generate 6.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OPEN HOUSE GROUP vs. GuocoLand Limited
Performance |
Timeline |
OPEN HOUSE GROUP |
GuocoLand Limited |
OPEN HOUSE and GuocoLand Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OPEN HOUSE and GuocoLand
The main advantage of trading using opposite OPEN HOUSE and GuocoLand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPEN HOUSE position performs unexpectedly, GuocoLand 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 GuocoLand will offset losses from the drop in GuocoLand's long position.OPEN HOUSE vs. NEW WORLD DEVCO | OPEN HOUSE vs. AEON MALL LTD | OPEN HOUSE vs. Hufvudstaden AB | OPEN HOUSE vs. FRASERS PROPERTY |
GuocoLand vs. NEW WORLD DEVCO | GuocoLand vs. OPEN HOUSE GROUP | GuocoLand vs. AEON MALL LTD | GuocoLand vs. Hufvudstaden AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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