Correlation Between Capgemini and GBT Technologies
Can any of the company-specific risk be diversified away by investing in both Capgemini 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 Capgemini and GBT Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capgemini SE and GBT Technologies, you can compare the effects of market volatilities on Capgemini 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 Capgemini with a short position of GBT Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and GBT Technologies.
Diversification Opportunities for Capgemini and GBT Technologies
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capgemini and GBT is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and GBT Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBT Technologies and Capgemini 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 Capgemini SE 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 Capgemini i.e., Capgemini and GBT Technologies go up and down completely randomly.
Pair Corralation between Capgemini and GBT Technologies
Assuming the 90 days horizon Capgemini SE is expected to under-perform the GBT Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Capgemini SE is 79.53 times less risky than GBT Technologies. The pink sheet trades about -0.13 of its potential returns per unit of risk. The GBT Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.01 in GBT Technologies on September 2, 2024 and sell it today you would earn a total of 0.00 from holding GBT Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Capgemini SE vs. GBT Technologies
Performance |
| Timeline |
| Capgemini SE |
| GBT Technologies |
Capgemini and GBT Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capgemini and GBT Technologies
The main advantage of trading using opposite Capgemini and GBT Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capgemini 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.| Capgemini vs. The Travelers Companies | Capgemini vs. Walt Disney | Capgemini vs. Home Depot | Capgemini vs. Procter Gamble |
| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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