Correlation Between Globavend Holdings and Hub
Can any of the company-specific risk be diversified away by investing in both Globavend Holdings and Hub 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 Globavend Holdings and Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globavend Holdings Limited and Hub Group, you can compare the effects of market volatilities on Globavend Holdings and Hub 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 Globavend Holdings with a short position of Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globavend Holdings and Hub.
Diversification Opportunities for Globavend Holdings and Hub
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Globavend and Hub is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Globavend Holdings Limited and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group and Globavend Holdings 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 Globavend Holdings Limited are associated (or correlated) with Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of Globavend Holdings i.e., Globavend Holdings and Hub go up and down completely randomly.
Pair Corralation between Globavend Holdings and Hub
Considering the 90-day investment horizon Globavend Holdings Limited is expected to generate 3.3 times more return on investment than Hub. However, Globavend Holdings is 3.3 times more volatile than Hub Group. It trades about 0.12 of its potential returns per unit of risk. Hub Group is currently generating about 0.04 per unit of risk. If you would invest 71.00 in Globavend Holdings Limited on June 29, 2024 and sell it today you would earn a total of 9.00 from holding Globavend Holdings Limited or generate 12.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Globavend Holdings Limited vs. Hub Group
Performance |
Timeline |
Globavend Holdings |
Hub Group |
Globavend Holdings and Hub Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Globavend Holdings and Hub
The main advantage of trading using opposite Globavend Holdings and Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globavend Holdings position performs unexpectedly, Hub 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 Hub will offset losses from the drop in Hub's long position.Globavend Holdings vs. GXO Logistics | Globavend Holdings vs. JB Hunt Transport | Globavend Holdings vs. Expeditors International of | Globavend Holdings vs. CH Robinson Worldwide |
Hub vs. Landstar System | Hub vs. JB Hunt Transport | Hub vs. Expeditors International of | Hub vs. CH Robinson Worldwide |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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