Correlation Between GA EXpress and Meridianlink

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

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

Diversification Opportunities for GA EXpress and Meridianlink

0.0

Correlation Coefficient

GA EXpress  Meridianlink

Pay attention - limited upside

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

Pair Corralation between GA EXpress and Meridianlink

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

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

GA eXpress  vs.  Meridianlink

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.

Meridianlink

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meridianlink has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with GA EXpress and Meridianlink

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

The idea behind GA eXpress and Meridianlink 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.