Correlation Between Cuentas and Gorilla Technology

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

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

Diversification Opportunities for Cuentas and Gorilla Technology

-0.67

Correlation Coefficient

Cuentas  Gorilla Technology

Excellent diversification

The 3 months correlation between Cuentas and Gorilla is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cuentas and Gorilla Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gorilla Technology and Cuentas 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 Cuentas are associated (or correlated) with Gorilla Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gorilla Technology has no effect on the direction of Cuentas i.e., Cuentas and Gorilla Technology go up and down completely randomly.

Pair Corralation between Cuentas and Gorilla Technology

If you would invest  3.24  in Gorilla Technology Group on September 4, 2024 and sell it today you would earn a total of  6.56  from holding Gorilla Technology Group or generate 202.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Cuentas  vs.  Gorilla Technology Group

Cuentas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cuentas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Cuentas is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Gorilla Technology

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gorilla Technology Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gorilla Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cuentas and Gorilla Technology

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

The idea behind Cuentas and Gorilla Technology Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.