Correlation Between ADEIA P and GivBux

Can any of the company-specific risk be diversified away by investing in both ADEIA P and GivBux 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 ADEIA P and GivBux into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ADEIA P and GivBux Inc, you can compare the effects of market volatilities on ADEIA P and GivBux 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 ADEIA P with a short position of GivBux. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADEIA P and GivBux.

Diversification Opportunities for ADEIA P and GivBux

0.38

Correlation Coefficient

ADEIA P  GivBux

Weak diversification

The 3 months correlation between ADEIA and GivBux is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ADEIA P and GivBux Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GivBux Inc and ADEIA P 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 ADEIA P are associated (or correlated) with GivBux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GivBux Inc has no effect on the direction of ADEIA P i.e., ADEIA P and GivBux go up and down completely randomly.

Pair Corralation between ADEIA P and GivBux

Given the investment horizon of 90 days ADEIA P is expected to generate 297.63 times less return on investment than GivBux. But when comparing it to its historical volatility, ADEIA P is 4.92 times less risky than GivBux. It trades about 0.0 of its potential returns per unit of risk. GivBux Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  120.00  in GivBux Inc on December 28, 2024 and sell it today you would earn a total of  505.00  from holding GivBux Inc or generate 420.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

ADEIA P  vs.  GivBux Inc

ADEIA P

Risk-Adjusted Performance

Weak

Over the last 90 days ADEIA P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, ADEIA P is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

GivBux Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ADEIA P and GivBux

The main advantage of trading using opposite ADEIA P and GivBux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADEIA P position performs unexpectedly, GivBux 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 GivBux will offset losses from the drop in GivBux's long position.

The idea behind ADEIA P and GivBux Inc 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.