Correlation Between GDS Holdings and Taskus
Can any of the company-specific risk be diversified away by investing in both GDS Holdings and Taskus 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 GDS Holdings and Taskus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDS Holdings and Taskus Inc, you can compare the effects of market volatilities on GDS Holdings and Taskus 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 GDS Holdings with a short position of Taskus. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDS Holdings and Taskus.
Diversification Opportunities for GDS Holdings and Taskus
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GDS and Taskus is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GDS Holdings and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus Inc and GDS 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 GDS Holdings are associated (or correlated) with Taskus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taskus Inc has no effect on the direction of GDS Holdings i.e., GDS Holdings and Taskus go up and down completely randomly.
Pair Corralation between GDS Holdings and Taskus
Considering the 90-day investment horizon GDS Holdings is expected to generate 1.34 times more return on investment than Taskus. However, GDS Holdings is 1.34 times more volatile than Taskus Inc. It trades about 0.04 of its potential returns per unit of risk. Taskus Inc is currently generating about 0.02 per unit of risk. If you would invest 1,582 in GDS Holdings on November 1, 2024 and sell it today you would earn a total of 723.00 from holding GDS Holdings or generate 45.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GDS Holdings vs. Taskus Inc
Performance |
| Timeline |
| GDS Holdings |
| Taskus Inc |
GDS Holdings and Taskus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDS Holdings and Taskus
The main advantage of trading using opposite GDS Holdings and Taskus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDS Holdings position performs unexpectedly, Taskus 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 Taskus will offset losses from the drop in Taskus' long position.| GDS Holdings vs. ExlService Holdings | GDS Holdings vs. Gartner | GDS Holdings vs. VNET Group DRC | GDS Holdings vs. CLARIVATE PLC |
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.
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