Correlation Between GBT Technologies and Nagarro SE
Can any of the company-specific risk be diversified away by investing in both GBT Technologies and Nagarro SE 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 Nagarro SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBT Technologies and Nagarro SE, you can compare the effects of market volatilities on GBT Technologies and Nagarro SE 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 Nagarro SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBT Technologies and Nagarro SE.
Diversification Opportunities for GBT Technologies and Nagarro SE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between GBT and Nagarro is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Nagarro SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nagarro SE 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 Nagarro SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nagarro SE has no effect on the direction of GBT Technologies i.e., GBT Technologies and Nagarro SE go up and down completely randomly.
Pair Corralation between GBT Technologies and Nagarro SE
Given the investment horizon of 90 days GBT Technologies is expected to generate 72.57 times more return on investment than Nagarro SE. However, GBT Technologies is 72.57 times more volatile than Nagarro SE. It trades about 0.2 of its potential returns per unit of risk. Nagarro SE is currently generating about 0.04 per unit of risk. If you would invest 0.02 in GBT Technologies on September 2, 2024 and sell it today you would lose (0.01) from holding GBT Technologies or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GBT Technologies vs. Nagarro SE
Performance |
| Timeline |
| GBT Technologies |
| Nagarro SE |
GBT Technologies and Nagarro SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBT Technologies and Nagarro SE
The main advantage of trading using opposite GBT Technologies and Nagarro SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBT Technologies position performs unexpectedly, Nagarro SE 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 Nagarro SE will offset losses from the drop in Nagarro SE's long position.| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
| Nagarro SE vs. Quisitive Technology Solutions | Nagarro SE vs. Deveron Corp | Nagarro SE vs. Appen Limited | Nagarro SE vs. Appen Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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