Correlation Between Click Holdings and GEE
Can any of the company-specific risk be diversified away by investing in both Click Holdings and GEE 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 Click Holdings and GEE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Click Holdings Limited and GEE Group, you can compare the effects of market volatilities on Click Holdings and GEE 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 Click Holdings with a short position of GEE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Click Holdings and GEE.
Diversification Opportunities for Click Holdings and GEE
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Click and GEE is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Click Holdings Limited and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group and Click Holdings 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 Click Holdings Limited are associated (or correlated) with GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of Click Holdings i.e., Click Holdings and GEE go up and down completely randomly.
Pair Corralation between Click Holdings and GEE
Given the investment horizon of 90 days Click Holdings Limited is expected to under-perform the GEE. But the stock apears to be less risky and, when comparing its historical volatility, Click Holdings Limited is 1.08 times less risky than GEE. The stock trades about -0.05 of its potential returns per unit of risk. The GEE Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 24.00 in GEE Group on October 9, 2024 and sell it today you would earn a total of 4.00 from holding GEE Group or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Click Holdings Limited vs. GEE Group
Performance |
| Timeline |
| Click Holdings |
| GEE Group |
Click Holdings and GEE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Click Holdings and GEE
The main advantage of trading using opposite Click Holdings and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Click Holdings position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.| Click Holdings vs. GEE Group | Click Holdings vs. Mastech Holdings | Click Holdings vs. Ziprecruiter | Click Holdings vs. Galaxy Payroll Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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