Correlation Between Amedeo Air and GSTechnologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and GSTechnologies 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 Amedeo Air and GSTechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and GSTechnologies, you can compare the effects of market volatilities on Amedeo Air and GSTechnologies 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 Amedeo Air with a short position of GSTechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and GSTechnologies.

Diversification Opportunities for Amedeo Air and GSTechnologies

0.88
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Amedeo and GSTechnologies is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and GSTechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSTechnologies and Amedeo Air 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 Amedeo Air Four are associated (or correlated) with GSTechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSTechnologies has no effect on the direction of Amedeo Air i.e., Amedeo Air and GSTechnologies go up and down completely randomly.

Pair Corralation between Amedeo Air and GSTechnologies

Assuming the 90 days trading horizon Amedeo Air is expected to generate 6.72 times less return on investment than GSTechnologies. But when comparing it to its historical volatility, Amedeo Air Four is 10.3 times less risky than GSTechnologies. It trades about 0.41 of its potential returns per unit of risk. GSTechnologies is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  138.00  in GSTechnologies on September 25, 2024 and sell it today you would earn a total of  52.00  from holding GSTechnologies or generate 37.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Amedeo Air Four  vs.  GSTechnologies

 Performance 
       Timeline  
Amedeo Air Four 

Risk-Adjusted Performance

27 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Amedeo Air Four are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Amedeo Air may actually be approaching a critical reversion point that can send shares even higher in January 2025.
GSTechnologies 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in GSTechnologies are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, GSTechnologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amedeo Air and GSTechnologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amedeo Air and GSTechnologies

The main advantage of trading using opposite Amedeo Air and GSTechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, GSTechnologies 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 GSTechnologies will offset losses from the drop in GSTechnologies' long position.
The idea behind Amedeo Air Four and GSTechnologies 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Transaction History
View history of all your transactions and understand their impact on performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like