Correlation Between GetSwift Technologies and Cistera Networks

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

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

Diversification Opportunities for GetSwift Technologies and Cistera Networks

1.0

Correlation Coefficient

GetSwift Technologies  Cistera Networks

No risk reduction

The 3 months correlation between GetSwift and Cistera is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GetSwift Technologies Limited and Cistera Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cistera Networks and GetSwift 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 GetSwift Technologies Limited are associated (or correlated) with Cistera Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cistera Networks has no effect on the direction of GetSwift Technologies i.e., GetSwift Technologies and Cistera Networks go up and down completely randomly.

Pair Corralation between GetSwift Technologies and Cistera Networks

If you would invest  0.01  in Cistera Networks on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Cistera Networks or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	0.47%
Values	Daily Returns

GetSwift Technologies Limited  vs.  Cistera Networks

GetSwift Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GetSwift Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GetSwift Technologies is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Cistera Networks

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with GetSwift Technologies and Cistera Networks

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

The idea behind GetSwift Technologies Limited and Cistera Networks 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.