Correlation Between Invest Capital and Gatron Industries

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

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

Diversification Opportunities for Invest Capital and Gatron Industries

0.0

Correlation Coefficient

Invest Capital  Gatron Industries

Pay attention - limited upside

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

Pair Corralation between Invest Capital and Gatron Industries

If you would invest  158.00  in Invest Capital Investment on October 25, 2024 and sell it today you would earn a total of  3.00  from holding Invest Capital Investment or generate 1.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Invest Capital Investment  vs.  Gatron Industries

Invest Capital Investment

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Invest Capital Investment are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, Invest Capital may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Gatron Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gatron Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Invest Capital and Gatron Industries

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

The idea behind Invest Capital Investment and Gatron Industries 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.