Correlation Between IPE Universal and GA EXpress

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

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

Diversification Opportunities for IPE Universal and GA EXpress

0.09

Correlation Coefficient

IPE Universal  GA EXpress

Significant diversification

The 3 months correlation between IPE and GAEX is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding IPE Universal and GA eXpress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GA eXpress and IPE Universal 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 IPE Universal are associated (or correlated) with GA EXpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GA eXpress has no effect on the direction of IPE Universal i.e., IPE Universal and GA EXpress go up and down completely randomly.

Pair Corralation between IPE Universal and GA EXpress

If you would invest  0.00  in GA eXpress on October 11, 2024 and sell it today you would earn a total of  0.00  from holding GA eXpress or generate 0.0% return on investment over 90 days.

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

IPE Universal  vs.  GA eXpress

IPE Universal

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days IPE Universal has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GA eXpress

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GA eXpress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with IPE Universal and GA EXpress

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

The idea behind IPE Universal and GA eXpress 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.