Correlation Between GBT Technologies and Converge Technology
Can any of the company-specific risk be diversified away by investing in both GBT Technologies and Converge Technology 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 Converge Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBT Technologies and Converge Technology Solutions, you can compare the effects of market volatilities on GBT Technologies and Converge Technology 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 Converge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBT Technologies and Converge Technology.
Diversification Opportunities for GBT Technologies and Converge Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GBT and Converge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Converge Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Converge Technology 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 Converge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Converge Technology has no effect on the direction of GBT Technologies i.e., GBT Technologies and Converge Technology go up and down completely randomly.
Pair Corralation between GBT Technologies and Converge Technology
Given the investment horizon of 90 days GBT Technologies is expected to generate 41.45 times more return on investment than Converge Technology. However, GBT Technologies is 41.45 times more volatile than Converge Technology Solutions. It trades about 0.15 of its potential returns per unit of risk. Converge Technology Solutions is currently generating about -0.01 per unit of risk. If you would invest 0.10 in GBT Technologies on August 31, 2024 and sell it today you would lose (0.09) from holding GBT Technologies or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GBT Technologies vs. Converge Technology Solutions
Performance |
| Timeline |
| GBT Technologies |
| Converge Technology |
GBT Technologies and Converge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBT Technologies and Converge Technology
The main advantage of trading using opposite GBT Technologies and Converge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBT Technologies position performs unexpectedly, Converge Technology 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 Converge Technology will offset losses from the drop in Converge Technology's long position.| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
| Converge Technology vs. Appen Limited | Converge Technology vs. Appen Limited | Converge Technology vs. Deveron Corp | Converge Technology vs. Direct Communication Solutions |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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