Correlation Between GA EXpress and GuestLogix

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

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

Diversification Opportunities for GA EXpress and GuestLogix

0.0

Correlation Coefficient

GA EXpress  GuestLogix

Pay attention - limited upside

The 3 months correlation between GAEX and GuestLogix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GA eXpress and GuestLogix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuestLogix and GA EXpress 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 GA eXpress are associated (or correlated) with GuestLogix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuestLogix has no effect on the direction of GA EXpress i.e., GA EXpress and GuestLogix go up and down completely randomly.

Pair Corralation between GA EXpress and GuestLogix

If you would invest  0.01  in GuestLogix on December 20, 2024 and sell it today you would earn a total of  0.00  from holding GuestLogix or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

GA eXpress  vs.  GuestLogix

GA eXpress

Risk-Adjusted Performance

Very Weak

Over the last 90 days GA eXpress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, GA EXpress is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GuestLogix

Risk-Adjusted Performance

Very Weak

Over the last 90 days GuestLogix has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GuestLogix is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GA EXpress and GuestLogix

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

The idea behind GA eXpress and GuestLogix 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 the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.