Correlation Between GIB Capital and WB Burgers

Can any of the company-specific risk be diversified away by investing in both GIB Capital and WB Burgers 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 WB Burgers 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 WB Burgers Asia, you can compare the effects of market volatilities on GIB Capital and WB Burgers 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 WB Burgers. Check out your portfolio center. Please also check ongoing floating volatility patterns of GIB Capital and WB Burgers.

Diversification Opportunities for GIB Capital and WB Burgers

0.0

Correlation Coefficient

GIB Capital  WB Burgers

Pay attention - limited upside

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

Pair Corralation between GIB Capital and WB Burgers

If you would invest (100.00) in WB Burgers Asia on December 19, 2024 and sell it today you would earn a total of  100.00  from holding WB Burgers Asia or generate -100.0% return on investment over 90 days.

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

GIB Capital Group  vs.  WB Burgers Asia

GIB Capital Group

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

WB Burgers Asia

Risk-Adjusted Performance

Very Weak

Over the last 90 days WB Burgers Asia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, WB Burgers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with GIB Capital and WB Burgers

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

The idea behind GIB Capital Group and WB Burgers Asia 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.