Correlation Between GLOBUS MEDICAL and Guidewire Software
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL and Guidewire Software 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 GLOBUS MEDICAL and Guidewire Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and Guidewire Software, you can compare the effects of market volatilities on GLOBUS MEDICAL and Guidewire 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 GLOBUS MEDICAL with a short position of Guidewire Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL and Guidewire Software.
Diversification Opportunities for GLOBUS MEDICAL and Guidewire Software
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GLOBUS and Guidewire is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and Guidewire Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidewire Software and GLOBUS MEDICAL 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 GLOBUS MEDICAL A are associated (or correlated) with Guidewire Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidewire Software has no effect on the direction of GLOBUS MEDICAL i.e., GLOBUS MEDICAL and Guidewire Software go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL and Guidewire Software
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 1.48 times more return on investment than Guidewire Software. However, GLOBUS MEDICAL is 1.48 times more volatile than Guidewire Software. It trades about 0.2 of its potential returns per unit of risk. Guidewire Software is currently generating about 0.0 per unit of risk. If you would invest 5,100 in GLOBUS MEDICAL A on September 3, 2025 and sell it today you would earn a total of 2,700 from holding GLOBUS MEDICAL A or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. Guidewire Software
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| Guidewire Software |
GLOBUS MEDICAL and Guidewire Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL and Guidewire Software
The main advantage of trading using opposite GLOBUS MEDICAL and Guidewire Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL position performs unexpectedly, Guidewire 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 Guidewire Software will offset losses from the drop in Guidewire Software's long position.| GLOBUS MEDICAL vs. Apple Inc | GLOBUS MEDICAL vs. Apple Inc | GLOBUS MEDICAL vs. Apple Inc | GLOBUS MEDICAL vs. Apple Inc |
| Guidewire Software vs. Nanjing Panda Electronics | Guidewire Software vs. Genertec Universal Medical | Guidewire Software vs. Delta Electronics Public | Guidewire Software vs. GLOBUS MEDICAL A |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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