Correlation Between Stevia Nutra and GABY

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

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

Diversification Opportunities for Stevia Nutra and GABY

-1.0

Correlation Coefficient

Stevia Nutra  GABY

Pay attention - limited upside

The 3 months correlation between Stevia and GABY is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Stevia Nutra Corp and GABY Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GABY Inc and Stevia Nutra 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 Stevia Nutra Corp are associated (or correlated) with GABY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GABY Inc has no effect on the direction of Stevia Nutra i.e., Stevia Nutra and GABY go up and down completely randomly.

Pair Corralation between Stevia Nutra and GABY

If you would invest  0.14  in GABY Inc on September 13, 2024 and sell it today you would earn a total of  0.00  from holding GABY Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Strong
Accuracy	97.63%
Values	Daily Returns

Stevia Nutra Corp  vs.  GABY Inc

Stevia Nutra Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stevia Nutra Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Stevia Nutra is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

GABY Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Stevia Nutra and GABY

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

The idea behind Stevia Nutra Corp and GABY Inc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.