Correlation Between GBT Technologies and Castellum
Can any of the company-specific risk be diversified away by investing in both GBT Technologies and Castellum 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 GBT Technologies and Castellum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBT Technologies and Castellum, you can compare the effects of market volatilities on GBT Technologies and Castellum 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 GBT Technologies with a short position of Castellum. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBT Technologies and Castellum.
Diversification Opportunities for GBT Technologies and Castellum
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GBT and Castellum is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum and GBT Technologies 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 GBT Technologies are associated (or correlated) with Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of GBT Technologies i.e., GBT Technologies and Castellum go up and down completely randomly.
Pair Corralation between GBT Technologies and Castellum
Given the investment horizon of 90 days GBT Technologies is expected to generate 39.95 times more return on investment than Castellum. However, GBT Technologies is 39.95 times more volatile than Castellum. It trades about 0.19 of its potential returns per unit of risk. Castellum is currently generating about 0.07 per unit of risk. If you would invest 0.01 in GBT Technologies on September 2, 2024 and sell it today you would earn a total of 0.00 from holding GBT Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
GBT Technologies vs. Castellum
Performance |
| Timeline |
| GBT Technologies |
| Castellum |
GBT Technologies and Castellum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBT Technologies and Castellum
The main advantage of trading using opposite GBT Technologies and Castellum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBT Technologies position performs unexpectedly, Castellum 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 Castellum will offset losses from the drop in Castellum's long position.| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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