Correlation Between Gartner and Chindata Group

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Can any of the company-specific risk be diversified away by investing in both Gartner and Chindata Group 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 Gartner and Chindata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and Chindata Group Holdings, you can compare the effects of market volatilities on Gartner and Chindata Group 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 Gartner with a short position of Chindata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and Chindata Group.

Diversification Opportunities for Gartner and Chindata Group

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Gartner and Chindata is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and Chindata Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chindata Group Holdings and Gartner 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 Gartner are associated (or correlated) with Chindata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chindata Group Holdings has no effect on the direction of Gartner i.e., Gartner and Chindata Group go up and down completely randomly.

Pair Corralation between Gartner and Chindata Group

Allowing for the 90-day total investment horizon Gartner is expected to generate 20.57 times less return on investment than Chindata Group. But when comparing it to its historical volatility, Gartner is 1.67 times less risky than Chindata Group. It trades about 0.02 of its potential returns per unit of risk. Chindata Group Holdings is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  620.00  in Chindata Group Holdings on March 26, 2022 and sell it today you would earn a total of  181.00  from holding Chindata Group Holdings or generate 29.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Gartner  vs.  Chindata Group Holdings

 Performance (%) 
      Timeline 
Gartner 
Gartner Performance
0 of 100
Over the last 90 days Gartner has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Structure and Payout Changes

Last Split Factor
2:1
Ex Dividend Date
1999-07-19
Last Split Date
1996-04-01

Gartner Price Channel

Chindata Group Holdings 
Chindata Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chindata Group Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Chindata Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Last Split Factor
15:1
Last Split Date
2013-06-18

Chindata Price Channel

Gartner and Chindata Group Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Gartner and Chindata Group

The main advantage of trading using opposite Gartner and Chindata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, Chindata Group 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 Chindata Group will offset losses from the drop in Chindata Group's long position.
The idea behind Gartner and Chindata Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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