Correlation Between Sidus Space and GBX International

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

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

Diversification Opportunities for Sidus Space and GBX International

0.59

Correlation Coefficient

Sidus Space  GBX International

Very weak diversification

The 3 months correlation between Sidus and GBX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sidus Space and GBX International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBX International and Sidus Space 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 Sidus Space are associated (or correlated) with GBX International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBX International has no effect on the direction of Sidus Space i.e., Sidus Space and GBX International go up and down completely randomly.

Pair Corralation between Sidus Space and GBX International

Given the investment horizon of 90 days Sidus Space is expected to under-perform the GBX International. But the stock apears to be less risky and, when comparing its historical volatility, Sidus Space is 1.24 times less risky than GBX International. The stock trades about -0.17 of its potential returns per unit of risk. The GBX International Group is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  0.02  in GBX International Group on December 23, 2024 and sell it today you would lose (0.01) from holding GBX International Group or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Sidus Space  vs.  GBX International Group

Sidus Space

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sidus Space 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 fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GBX International

Risk-Adjusted Performance

Very Weak

Over the last 90 days GBX International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Sidus Space and GBX International

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

The idea behind Sidus Space and GBX International Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.