Correlation Between GivBux and GuestLogix

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

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

Diversification Opportunities for GivBux and GuestLogix

0.0

Correlation Coefficient

GivBux  GuestLogix

Pay attention - limited upside

The 3 months correlation between GivBux and GuestLogix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GivBux Inc and GuestLogix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuestLogix and GivBux 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 GivBux Inc 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 GivBux i.e., GivBux and GuestLogix go up and down completely randomly.

Pair Corralation between GivBux and GuestLogix

Given the investment horizon of 90 days GivBux Inc is expected to generate 1.84 times more return on investment than GuestLogix. However, GivBux is 1.84 times more volatile than GuestLogix. It trades about 0.07 of its potential returns per unit of risk. GuestLogix is currently generating about 0.03 per unit of risk. If you would invest  233.00  in GivBux Inc on October 26, 2024 and sell it today you would lose (79.00) from holding GivBux Inc or give up 33.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

GivBux Inc  vs.  GuestLogix

GivBux Inc

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 17 (%) 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.

GuestLogix

Risk-Adjusted Performance

0 of 100

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GivBux and GuestLogix

The main advantage of trading using opposite GivBux and GuestLogix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GivBux 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 GivBux Inc 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.