Correlation Between Gartner and CGI
Can any of the company-specific risk be diversified away by investing in both Gartner and CGI 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 Gartner and CGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and CGI Inc, you can compare the effects of market volatilities on Gartner and CGI 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 Gartner with a short position of CGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and CGI.
Diversification Opportunities for Gartner and CGI
Average diversification
The 3 months correlation between Gartner and CGI is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and CGI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGI Inc and Gartner 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 Gartner are associated (or correlated) with CGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGI Inc has no effect on the direction of Gartner i.e., Gartner and CGI go up and down completely randomly.
Pair Corralation between Gartner and CGI
Allowing for the 90-day total investment horizon Gartner is expected to generate 1.32 times more return on investment than CGI. However, Gartner is 1.32 times more volatile than CGI Inc. It trades about 0.07 of its potential returns per unit of risk. CGI Inc is currently generating about 0.04 per unit of risk. If you would invest 34,093 in Gartner on August 27, 2024 and sell it today you would earn a total of 17,885 from holding Gartner or generate 52.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. CGI Inc
Performance |
| Timeline |
| Gartner |
| CGI Inc |
Gartner and CGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and CGI
The main advantage of trading using opposite Gartner and CGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner position performs unexpectedly, CGI 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 CGI will offset losses from the drop in CGI's long position.| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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