Correlation Between BROADSTNET LEADL and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both BROADSTNET LEADL and Graham Holdings 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 BROADSTNET LEADL and Graham Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADSTNET LEADL 00025 and Graham Holdings Co, you can compare the effects of market volatilities on BROADSTNET LEADL and Graham Holdings 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 BROADSTNET LEADL with a short position of Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADSTNET LEADL and Graham Holdings.
Diversification Opportunities for BROADSTNET LEADL and Graham Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BROADSTNET and Graham is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BROADSTNET LEADL 00025 and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings and BROADSTNET LEADL 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 BROADSTNET LEADL 00025 are associated (or correlated) with Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of BROADSTNET LEADL i.e., BROADSTNET LEADL and Graham Holdings go up and down completely randomly.
Pair Corralation between BROADSTNET LEADL and Graham Holdings
Assuming the 90 days trading horizon BROADSTNET LEADL 00025 is expected to generate 0.63 times more return on investment than Graham Holdings. However, BROADSTNET LEADL 00025 is 1.6 times less risky than Graham Holdings. It trades about 0.21 of its potential returns per unit of risk. Graham Holdings Co is currently generating about 0.05 per unit of risk. If you would invest 1,318 in BROADSTNET LEADL 00025 on July 20, 2025 and sell it today you would earn a total of 242.00 from holding BROADSTNET LEADL 00025 or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADSTNET LEADL 00025 vs. Graham Holdings Co
Performance |
| Timeline |
| BROADSTNET LEADL 00025 |
| Graham Holdings |
BROADSTNET LEADL and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADSTNET LEADL and Graham Holdings
The main advantage of trading using opposite BROADSTNET LEADL and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADSTNET LEADL position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.| BROADSTNET LEADL vs. REGAL ASIAN INVESTMENTS | BROADSTNET LEADL vs. ZEDER INVESTMENTS | BROADSTNET LEADL vs. Chuangs China Investments | BROADSTNET LEADL vs. Amkor Technology |
| Graham Holdings vs. China Datang | Graham Holdings vs. INFORMATION SVC GRP | Graham Holdings vs. Hyrican Informationssysteme Aktiengesellschaft | Graham Holdings vs. Nanjing Panda Electronics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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