Correlation Between Gatekeeper Systems and Nubeva Technologies

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

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

Diversification Opportunities for Gatekeeper Systems and Nubeva Technologies

-0.31

Correlation Coefficient

Gatekeeper Systems  Nubeva Technologies

Very good diversification

The 3 months correlation between Gatekeeper and Nubeva is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gatekeeper Systems and Nubeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubeva Technologies and Gatekeeper Systems 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 Gatekeeper Systems are associated (or correlated) with Nubeva Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubeva Technologies has no effect on the direction of Gatekeeper Systems i.e., Gatekeeper Systems and Nubeva Technologies go up and down completely randomly.

Pair Corralation between Gatekeeper Systems and Nubeva Technologies

Assuming the 90 days horizon Gatekeeper Systems is expected to generate 0.37 times more return on investment than Nubeva Technologies. However, Gatekeeper Systems is 2.7 times less risky than Nubeva Technologies. It trades about -0.02 of its potential returns per unit of risk. Nubeva Technologies is currently generating about -0.02 per unit of risk. If you would invest  64.00  in Gatekeeper Systems on October 9, 2024 and sell it today you would lose (5.00) from holding Gatekeeper Systems or give up 7.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gatekeeper Systems  vs.  Nubeva Technologies

Gatekeeper Systems

Risk-Adjusted Performance

0 of 100

Very Weak

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

Nubeva Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nubeva Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Gatekeeper Systems and Nubeva Technologies

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

The idea behind Gatekeeper Systems and Nubeva Technologies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.