Correlation Between GX AI and Trade Desk
Can any of the company-specific risk be diversified away by investing in both GX AI and Trade Desk 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 GX AI and Trade Desk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GX AI TECH and The Trade Desk, you can compare the effects of market volatilities on GX AI and Trade Desk 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 GX AI with a short position of Trade Desk. Check out your portfolio center. Please also check ongoing floating volatility patterns of GX AI and Trade Desk.
Diversification Opportunities for GX AI and Trade Desk
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BAIQ39 and Trade is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding GX AI TECH and The Trade Desk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Desk and GX AI 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 GX AI TECH are associated (or correlated) with Trade Desk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Desk has no effect on the direction of GX AI i.e., GX AI and Trade Desk go up and down completely randomly.
Pair Corralation between GX AI and Trade Desk
Assuming the 90 days trading horizon GX AI TECH is expected to generate 0.26 times more return on investment than Trade Desk. However, GX AI TECH is 3.85 times less risky than Trade Desk. It trades about -0.13 of its potential returns per unit of risk. The Trade Desk is currently generating about -0.08 per unit of risk. If you would invest 8,068 in GX AI TECH on November 5, 2024 and sell it today you would lose (276.00) from holding GX AI TECH or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
GX AI TECH vs. The Trade Desk
Performance |
| Timeline |
| GX AI TECH |
| Trade Desk |
GX AI and Trade Desk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GX AI and Trade Desk
The main advantage of trading using opposite GX AI and Trade Desk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GX AI position performs unexpectedly, Trade Desk 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 Trade Desk will offset losses from the drop in Trade Desk's long position.| GX AI vs. Universal Health Services, | GX AI vs. Fair Isaac | GX AI vs. Air Products and | GX AI vs. Public Storage |
| Trade Desk vs. Seagate Technology Holdings | Trade Desk vs. Raytheon Technologies | Trade Desk vs. Take Two Interactive Software | Trade Desk vs. PENN Entertainment, |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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