Correlation Between Gtn and Weebit Nano
Can any of the company-specific risk be diversified away by investing in both Gtn and Weebit Nano 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 Gtn and Weebit Nano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gtn and Weebit Nano, you can compare the effects of market volatilities on Gtn and Weebit Nano 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 Gtn with a short position of Weebit Nano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gtn and Weebit Nano.
Diversification Opportunities for Gtn and Weebit Nano
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gtn and Weebit is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gtn and Weebit Nano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weebit Nano and Gtn 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 Gtn are associated (or correlated) with Weebit Nano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weebit Nano has no effect on the direction of Gtn i.e., Gtn and Weebit Nano go up and down completely randomly.
Pair Corralation between Gtn and Weebit Nano
Assuming the 90 days trading horizon Gtn is expected to under-perform the Weebit Nano. But the stock apears to be less risky and, when comparing its historical volatility, Gtn is 5.22 times less risky than Weebit Nano. The stock trades about -0.24 of its potential returns per unit of risk. The Weebit Nano is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Weebit Nano on August 26, 2024 and sell it today you would earn a total of 91.00 from holding Weebit Nano or generate 45.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gtn vs. Weebit Nano
Performance |
| Timeline |
| Gtn |
| Weebit Nano |
Gtn and Weebit Nano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gtn and Weebit Nano
The main advantage of trading using opposite Gtn and Weebit Nano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gtn position performs unexpectedly, Weebit Nano 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 Weebit Nano will offset losses from the drop in Weebit Nano's long position.| Gtn vs. Charter Hall Education | Gtn vs. Macquarie Technology Group | Gtn vs. Mach7 Technologies | Gtn vs. Hansen Technologies |
| Weebit Nano vs. Gtn | Weebit Nano vs. Dynamic Drill And | Weebit Nano vs. Iluka Resources | Weebit Nano vs. Nufarm |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets |