Correlation Between GBX International and INEO Tech
Can any of the company-specific risk be diversified away by investing in both GBX International and INEO Tech 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 GBX International and INEO Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBX International Group and INEO Tech Corp, you can compare the effects of market volatilities on GBX International and INEO Tech 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 GBX International with a short position of INEO Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBX International and INEO Tech.
Diversification Opportunities for GBX International and INEO Tech
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GBX and INEO is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GBX International Group and INEO Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INEO Tech Corp and GBX International 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 GBX International Group are associated (or correlated) with INEO Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INEO Tech Corp has no effect on the direction of GBX International i.e., GBX International and INEO Tech go up and down completely randomly.
Pair Corralation between GBX International and INEO Tech
If you would invest 0.02 in GBX International Group on September 23, 2024 and sell it today you would earn a total of 0.00 from holding GBX International Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GBX International Group vs. INEO Tech Corp
Performance |
Timeline |
GBX International |
INEO Tech Corp |
GBX International and INEO Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GBX International and INEO Tech
The main advantage of trading using opposite GBX International and INEO Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBX International position performs unexpectedly, INEO Tech 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 INEO Tech will offset losses from the drop in INEO Tech's long position.GBX International vs. INEO Tech Corp | GBX International vs. Marchex | GBX International vs. Snipp Interactive | GBX International vs. Emerald Expositions Events |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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