Correlation Between GBT Technologies and Xalles Holdings
Can any of the company-specific risk be diversified away by investing in both GBT Technologies and Xalles Holdings 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 Xalles Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBT Technologies and Xalles Holdings, you can compare the effects of market volatilities on GBT Technologies and Xalles Holdings 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 Xalles Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBT Technologies and Xalles Holdings.
Diversification Opportunities for GBT Technologies and Xalles Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GBT and Xalles is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Xalles Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xalles Holdings 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 Xalles Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xalles Holdings has no effect on the direction of GBT Technologies i.e., GBT Technologies and Xalles Holdings go up and down completely randomly.
Pair Corralation between GBT Technologies and Xalles Holdings
Given the investment horizon of 90 days GBT Technologies is expected to generate 13.3 times more return on investment than Xalles Holdings. However, GBT Technologies is 13.3 times more volatile than Xalles Holdings. It trades about 0.2 of its potential returns per unit of risk. Xalles Holdings is currently generating about 0.05 per unit of risk. If you would invest 0.02 in GBT Technologies on December 27, 2024 and sell it today you would lose (0.01) from holding GBT Technologies or give up 50.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
GBT Technologies vs. Xalles Holdings
Performance |
Timeline |
GBT Technologies |
Xalles Holdings |
GBT Technologies and Xalles Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GBT Technologies and Xalles Holdings
The main advantage of trading using opposite GBT Technologies and Xalles Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBT Technologies position performs unexpectedly, Xalles Holdings 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 Xalles Holdings will offset losses from the drop in Xalles Holdings' long position.GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
Xalles Holdings vs. Two Hands Corp | Xalles Holdings vs. Visium Technologies | Xalles Holdings vs. Tautachrome | Xalles Holdings vs. V Group |
Check out your portfolio center.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |