Correlation Between GivBux and ProStar Holdings

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

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

Diversification Opportunities for GivBux and ProStar Holdings

0.61

Correlation Coefficient

GivBux  ProStar Holdings

Poor diversification

The 3 months correlation between GivBux and ProStar is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GivBux Inc and ProStar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProStar Holdings 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 ProStar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProStar Holdings has no effect on the direction of GivBux i.e., GivBux and ProStar Holdings go up and down completely randomly.

Pair Corralation between GivBux and ProStar Holdings

Given the investment horizon of 90 days GivBux Inc is expected to generate 1.54 times more return on investment than ProStar Holdings. However, GivBux is 1.54 times more volatile than ProStar Holdings. It trades about 0.23 of its potential returns per unit of risk. ProStar Holdings is currently generating about 0.06 per unit of risk. If you would invest  120.00  in GivBux Inc on December 29, 2024 and sell it today you would earn a total of  482.00  from holding GivBux Inc or generate 401.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

GivBux Inc  vs.  ProStar Holdings

GivBux Inc

Risk-Adjusted Performance

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.

ProStar Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ProStar Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, ProStar Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GivBux and ProStar Holdings

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

The idea behind GivBux Inc and ProStar Holdings 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.