Correlation Between CiT and Gorilla Technology
Can any of the company-specific risk be diversified away by investing in both CiT and Gorilla Technology 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 CiT and Gorilla Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CiT Inc and Gorilla Technology Group, you can compare the effects of market volatilities on CiT and Gorilla Technology 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 CiT with a short position of Gorilla Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Gorilla Technology.
Diversification Opportunities for CiT and Gorilla Technology
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CiT and Gorilla is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Gorilla Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gorilla Technology and CiT 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 CiT Inc are associated (or correlated) with Gorilla Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gorilla Technology has no effect on the direction of CiT i.e., CiT and Gorilla Technology go up and down completely randomly.
Pair Corralation between CiT and Gorilla Technology
Given the investment horizon of 90 days CiT Inc is expected to generate 0.81 times more return on investment than Gorilla Technology. However, CiT Inc is 1.23 times less risky than Gorilla Technology. It trades about -0.01 of its potential returns per unit of risk. Gorilla Technology Group is currently generating about -0.06 per unit of risk. If you would invest 697.00 in CiT Inc on August 24, 2024 and sell it today you would lose (14.00) from holding CiT Inc or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CiT Inc vs. Gorilla Technology Group
Performance |
| Timeline |
| CiT Inc |
| Gorilla Technology |
CiT and Gorilla Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CiT and Gorilla Technology
The main advantage of trading using opposite CiT and Gorilla Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Gorilla Technology 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 Gorilla Technology will offset losses from the drop in Gorilla Technology's long position.| CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
| Gorilla Technology vs. Cerberus Cyber Sentinel | Gorilla Technology vs. Taoping | Gorilla Technology vs. VirnetX Holding Corp | Gorilla Technology vs. Tucows Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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