Correlation Between SinterCast and GiG Software
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By analyzing existing cross correlation between SinterCast AB and GiG Software PLC, you can compare the effects of market volatilities on SinterCast and GiG Software 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 SinterCast with a short position of GiG Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinterCast and GiG Software.
Diversification Opportunities for SinterCast and GiG Software
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SinterCast and GiG is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and GiG Software PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiG Software PLC and SinterCast 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 SinterCast AB are associated (or correlated) with GiG Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiG Software PLC has no effect on the direction of SinterCast i.e., SinterCast and GiG Software go up and down completely randomly.
Pair Corralation between SinterCast and GiG Software
Assuming the 90 days trading horizon SinterCast is expected to generate 3.2 times less return on investment than GiG Software. But when comparing it to its historical volatility, SinterCast AB is 2.46 times less risky than GiG Software. It trades about 0.19 of its potential returns per unit of risk. GiG Software PLC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 434.00 in GiG Software PLC on April 23, 2025 and sell it today you would earn a total of 274.00 from holding GiG Software PLC or generate 63.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
SinterCast AB vs. GiG Software PLC
Performance |
Timeline |
SinterCast AB |
GiG Software PLC |
SinterCast and GiG Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SinterCast and GiG Software
The main advantage of trading using opposite SinterCast and GiG Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinterCast position performs unexpectedly, GiG Software 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 GiG Software will offset losses from the drop in GiG Software's long position.SinterCast vs. CTT Systems AB | SinterCast vs. Studsvik AB | SinterCast vs. Proact IT Group | SinterCast vs. Rottneros AB |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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