Correlation Between Geo and ATIF Old

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

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

Diversification Opportunities for Geo and ATIF Old

0.0

Correlation Coefficient

Geo  ATIF Old

Pay attention - limited upside

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

Pair Corralation between Geo and ATIF Old

If you would invest  2,829  in Geo Group on December 26, 2024 and sell it today you would earn a total of  74.00  from holding Geo Group or generate 2.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Geo Group  vs.  ATIF Old

Geo Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Geo Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Geo may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ATIF Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Geo and ATIF Old

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

The idea behind Geo Group and ATIF Old 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.