Correlation Between GIB Capital and DWACW Old

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

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

Diversification Opportunities for GIB Capital and DWACW Old

0.0

Correlation Coefficient

GIB Capital  DWACW Old

Pay attention - limited upside

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

Pair Corralation between GIB Capital and DWACW Old

If you would invest  500.00  in DWACW Old on October 24, 2024 and sell it today you would earn a total of  0.00  from holding DWACW Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

GIB Capital Group  vs.  DWACW Old

GIB Capital Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GIB Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, GIB Capital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

DWACW Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DWACW Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, DWACW Old is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with GIB Capital and DWACW Old

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

The idea behind GIB Capital Group and DWACW 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.