Correlation Between GSR II and Nubia Brand
Can any of the company-specific risk be diversified away by investing in both GSR II and Nubia Brand 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 GSR II and Nubia Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSR II Meteora and Nubia Brand International, you can compare the effects of market volatilities on GSR II and Nubia Brand 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 GSR II with a short position of Nubia Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSR II and Nubia Brand.
Diversification Opportunities for GSR II and Nubia Brand
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GSR and Nubia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GSR II Meteora and Nubia Brand International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubia Brand International and GSR II 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 GSR II Meteora are associated (or correlated) with Nubia Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubia Brand International has no effect on the direction of GSR II i.e., GSR II and Nubia Brand go up and down completely randomly.
Pair Corralation between GSR II and Nubia Brand
Assuming the 90 days horizon GSR II Meteora is expected to under-perform the Nubia Brand. In addition to that, GSR II is 6.65 times more volatile than Nubia Brand International. It trades about -0.12 of its total potential returns per unit of risk. Nubia Brand International is currently generating about 0.06 per unit of volatility. If you would invest 1,015 in Nubia Brand International on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Nubia Brand International or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.79% |
| Values | Daily Returns |
GSR II Meteora vs. Nubia Brand International
Performance |
| Timeline |
| GSR II Meteora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nubia Brand International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GSR II and Nubia Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSR II and Nubia Brand
The main advantage of trading using opposite GSR II and Nubia Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSR II position performs unexpectedly, Nubia Brand 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 Nubia Brand will offset losses from the drop in Nubia Brand's long position.| GSR II vs. Aldel Financial II | GSR II vs. Getty Copper | GSR II vs. WiMi Hologram Cloud | GSR II vs. Paysafe |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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