Correlation Between V and GBT Technologies

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

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

Diversification Opportunities for V and GBT Technologies

0.0

Correlation Coefficient

V  GBT Technologies

Pay attention - limited upside

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

Pair Corralation between V and GBT Technologies

Given the investment horizon of 90 days V Group is expected to under-perform the GBT Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, V Group is 42.53 times less risky than GBT Technologies. The pink sheet trades about -0.01 of its potential returns per unit of risk. The GBT Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  0.02  in GBT Technologies on September 15, 2024 and sell it today you would lose (0.01) from holding GBT Technologies or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

V Group  vs.  GBT Technologies

V Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days V Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, V is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

GBT Technologies

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GBT Technologies are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental indicators, GBT Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with V and GBT Technologies

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

The idea behind V Group and GBT Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.