Correlation Between Geo and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both Geo and ATIF Holdings 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 Geo and ATIF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geo Group and ATIF Holdings, you can compare the effects of market volatilities on Geo and ATIF Holdings 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 Geo with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geo and ATIF Holdings.
Diversification Opportunities for Geo and ATIF Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geo and ATIF is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Geo Group and ATIF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings and Geo 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 Geo Group are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings has no effect on the direction of Geo i.e., Geo and ATIF Holdings go up and down completely randomly.
Pair Corralation between Geo and ATIF Holdings
Considering the 90-day investment horizon Geo Group is expected to generate 0.56 times more return on investment than ATIF Holdings. However, Geo Group is 1.79 times less risky than ATIF Holdings. It trades about 0.22 of its potential returns per unit of risk. ATIF Holdings is currently generating about 0.05 per unit of risk. If you would invest 1,321 in Geo Group on September 2, 2024 and sell it today you would earn a total of 1,530 from holding Geo Group or generate 115.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geo Group vs. ATIF Holdings
Performance |
| Timeline |
| Geo Group |
| ATIF Holdings |
Geo and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geo and ATIF Holdings
The main advantage of trading using opposite Geo and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geo position performs unexpectedly, ATIF Holdings 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' long position.The idea behind Geo Group and ATIF Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ATIF Holdings vs. SPENN Technology AS | ATIF Holdings vs. Arcane Crypto AB | ATIF Holdings vs. OFX Group Ltd | ATIF Holdings vs. Blockmate Ventures |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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