Correlation Between GuestLogix and Fastbase

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

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

Diversification Opportunities for GuestLogix and Fastbase

0.0

Correlation Coefficient

GuestLogix  Fastbase

Pay attention - limited upside

The 3 months correlation between GuestLogix and Fastbase is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GuestLogix and Fastbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastbase and GuestLogix 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 GuestLogix are associated (or correlated) with Fastbase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastbase has no effect on the direction of GuestLogix i.e., GuestLogix and Fastbase go up and down completely randomly.

Pair Corralation between GuestLogix and Fastbase

If you would invest  150.00  in Fastbase on October 12, 2024 and sell it today you would lose (20.00) from holding Fastbase or give up 13.33% of portfolio value over 90 days.

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

GuestLogix  vs.  Fastbase

GuestLogix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GuestLogix has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GuestLogix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Fastbase

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fastbase are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Fastbase exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GuestLogix and Fastbase

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

The idea behind GuestLogix and Fastbase 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.