Correlation Between Rackspace Technology and GENERAL
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By analyzing existing cross correlation between Rackspace Technology and GENERAL ELEC CAP, you can compare the effects of market volatilities on Rackspace Technology and GENERAL 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 Rackspace Technology with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rackspace Technology and GENERAL.
Diversification Opportunities for Rackspace Technology and GENERAL
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rackspace and GENERAL is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Rackspace Technology and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Rackspace Technology 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 Rackspace Technology are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Rackspace Technology i.e., Rackspace Technology and GENERAL go up and down completely randomly.
Pair Corralation between Rackspace Technology and GENERAL
Considering the 90-day investment horizon Rackspace Technology is expected to under-perform the GENERAL. In addition to that, Rackspace Technology is 2.71 times more volatile than GENERAL ELEC CAP. It trades about -0.05 of its total potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.03 per unit of volatility. If you would invest 9,598 in GENERAL ELEC CAP on December 24, 2024 and sell it today you would lose (118.00) from holding GENERAL ELEC CAP or give up 1.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 35.0% |
Values | Daily Returns |
Rackspace Technology vs. GENERAL ELEC CAP
Performance |
Timeline |
Rackspace Technology |
GENERAL ELEC CAP |
Rackspace Technology and GENERAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rackspace Technology and GENERAL
The main advantage of trading using opposite Rackspace Technology and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rackspace Technology position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.Rackspace Technology vs. GigaCloud Technology Class | Rackspace Technology vs. Alarum Technologies | Rackspace Technology vs. Stem Inc | Rackspace Technology vs. Pagaya Technologies |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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