Correlation Between GMO Internet and FMTO New
Can any of the company-specific risk be diversified away by investing in both GMO Internet and FMTO New 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 GMO Internet and FMTO New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMO Internet and FMTO New, you can compare the effects of market volatilities on GMO Internet and FMTO New 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 GMO Internet with a short position of FMTO New. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMO Internet and FMTO New.
Diversification Opportunities for GMO Internet and FMTO New
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GMO and FMTO is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding GMO Internet and FMTO New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMTO New and GMO Internet 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 GMO Internet are associated (or correlated) with FMTO New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMTO New has no effect on the direction of GMO Internet i.e., GMO Internet and FMTO New go up and down completely randomly.
Pair Corralation between GMO Internet and FMTO New
If you would invest 2,600 in GMO Internet on October 10, 2025 and sell it today you would lose (50.00) from holding GMO Internet or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.82% |
| Values | Daily Returns |
GMO Internet vs. FMTO New
Performance |
| Timeline |
| GMO Internet |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| FMTO New |
Risk-Adjusted Performance
Weakest
Weak | Strong |
GMO Internet and FMTO New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMO Internet and FMTO New
The main advantage of trading using opposite GMO Internet and FMTO New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMO Internet position performs unexpectedly, FMTO New 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 FMTO New will offset losses from the drop in FMTO New's long position.| GMO Internet vs. Spark New Zealand | GMO Internet vs. Spark New Zealand | GMO Internet vs. Trk Telekomnikasyon Anonim | GMO Internet vs. Telecom Argentina SA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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