Correlation Between GT Capital and Ever Gotesco

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

By analyzing existing cross correlation between GT Capital Holdings and Ever Gotesco Resources, you can compare the effects of market volatilities on GT Capital and Ever Gotesco 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 GT Capital with a short position of Ever Gotesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Ever Gotesco.

Diversification Opportunities for GT Capital and Ever Gotesco

0.28

Correlation Coefficient

GT Capital  Ever Gotesco

Modest diversification

The 3 months correlation between GTCAP and Ever is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Ever Gotesco Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Gotesco Resources and GT 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 GT Capital Holdings are associated (or correlated) with Ever Gotesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Gotesco Resources has no effect on the direction of GT Capital i.e., GT Capital and Ever Gotesco go up and down completely randomly.

Pair Corralation between GT Capital and Ever Gotesco

Assuming the 90 days trading horizon GT Capital Holdings is expected to under-perform the Ever Gotesco. In addition to that, GT Capital is 1.71 times more volatile than Ever Gotesco Resources. It trades about -0.18 of its total potential returns per unit of risk. Ever Gotesco Resources is currently generating about -0.22 per unit of volatility. If you would invest  25.00  in Ever Gotesco Resources on December 5, 2024 and sell it today you would lose (1.00) from holding Ever Gotesco Resources or give up 4.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.91%
Values	Daily Returns

GT Capital Holdings  vs.  Ever Gotesco Resources

GT Capital Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days GT Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Ever Gotesco Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ever Gotesco Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ever Gotesco is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GT Capital and Ever Gotesco

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

The idea behind GT Capital Holdings and Ever Gotesco Resources 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 Stocks Directory module to find actively traded stocks across global markets.