Correlation Between Gamma Communications and Systemair
Can any of the company-specific risk be diversified away by investing in both Gamma Communications and Systemair 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 Gamma Communications and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamma Communications PLC and Systemair AB, you can compare the effects of market volatilities on Gamma Communications and Systemair 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 Gamma Communications with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamma Communications and Systemair.
Diversification Opportunities for Gamma Communications and Systemair
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamma and Systemair is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gamma Communications PLC and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Gamma Communications 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 Gamma Communications PLC are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Gamma Communications i.e., Gamma Communications and Systemair go up and down completely randomly.
Pair Corralation between Gamma Communications and Systemair
Assuming the 90 days trading horizon Gamma Communications PLC is expected to under-perform the Systemair. In addition to that, Gamma Communications is 1.18 times more volatile than Systemair AB. It trades about -0.11 of its total potential returns per unit of risk. Systemair AB is currently generating about 0.17 per unit of volatility. If you would invest 7,710 in Systemair AB on April 24, 2025 and sell it today you would earn a total of 1,570 from holding Systemair AB or generate 20.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.88% |
Values | Daily Returns |
Gamma Communications PLC vs. Systemair AB
Performance |
Timeline |
Gamma Communications PLC |
Systemair AB |
Gamma Communications and Systemair Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gamma Communications and Systemair
The main advantage of trading using opposite Gamma Communications and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamma Communications position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.Gamma Communications vs. Impax Environmental Markets | Gamma Communications vs. Aeorema Communications Plc | Gamma Communications vs. musicMagpie PLC | Gamma Communications vs. Zanaga Iron Ore |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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