Correlation Between GBT Technologies and Quisitive Technology

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

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

Diversification Opportunities for GBT Technologies and Quisitive Technology

-0.2

Correlation Coefficient

GBT Technologies  Quisitive Technology

Good diversification

The 3 months correlation between GBT and Quisitive is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Quisitive Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quisitive Technology and GBT Technologies 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 GBT Technologies are associated (or correlated) with Quisitive Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quisitive Technology has no effect on the direction of GBT Technologies i.e., GBT Technologies and Quisitive Technology go up and down completely randomly.

Pair Corralation between GBT Technologies and Quisitive Technology

Given the investment horizon of 90 days GBT Technologies is expected to generate 39.17 times more return on investment than Quisitive Technology. However, GBT Technologies is 39.17 times more volatile than Quisitive Technology Solutions. It trades about 0.17 of its potential returns per unit of risk. Quisitive Technology Solutions is currently generating about 0.02 per unit of risk. If you would invest  0.05  in GBT Technologies on December 3, 2024 and sell it today you would lose (0.04) from holding GBT Technologies or give up 80.0% of portfolio value over 90 days.

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

GBT Technologies  vs.  Quisitive Technology Solutions

GBT Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GBT Technologies are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, GBT Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Quisitive Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quisitive Technology Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Quisitive Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GBT Technologies and Quisitive Technology

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

The idea behind GBT Technologies and Quisitive Technology Solutions 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.