Correlation Between GBT Technologies and XTM
Can any of the company-specific risk be diversified away by investing in both GBT Technologies and XTM 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 XTM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBT Technologies and XTM Inc, you can compare the effects of market volatilities on GBT Technologies and XTM 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 XTM. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBT Technologies and XTM.
Diversification Opportunities for GBT Technologies and XTM
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GBT and XTM is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and XTM Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTM Inc 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 XTM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTM Inc has no effect on the direction of GBT Technologies i.e., GBT Technologies and XTM go up and down completely randomly.
Pair Corralation between GBT Technologies and XTM
Given the investment horizon of 90 days GBT Technologies is expected to generate 9.55 times more return on investment than XTM. However, GBT Technologies is 9.55 times more volatile than XTM Inc. It trades about 0.23 of its potential returns per unit of risk. XTM Inc is currently generating about 0.1 per unit of risk. If you would invest 0.01 in GBT Technologies on September 12, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GBT Technologies vs. XTM Inc
Performance |
| Timeline |
| GBT Technologies |
| XTM Inc |
GBT Technologies and XTM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBT Technologies and XTM
The main advantage of trading using opposite GBT Technologies and XTM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBT Technologies position performs unexpectedly, XTM 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 XTM will offset losses from the drop in XTM's long position.| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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