Correlation Between GobiMin and Global Digital

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

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

Diversification Opportunities for GobiMin and Global Digital

0.0

Correlation Coefficient

GobiMin  Global Digital

Pay attention - limited upside

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

Pair Corralation between GobiMin and Global Digital

If you would invest  0.01  in Global Digital Soltn on December 26, 2024 and sell it today you would earn a total of  0.00  from holding Global Digital Soltn or generate 0.0% return on investment over 90 days.

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

GobiMin  vs.  Global Digital Soltn

GobiMin

Risk-Adjusted Performance

Very Weak

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

Global Digital Soltn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Digital Soltn has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Global Digital is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GobiMin and Global Digital

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

The idea behind GobiMin and Global Digital Soltn 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.