Correlation Between DSS and Geo

Can any of the company-specific risk be diversified away by investing in both DSS and Geo 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 DSS and Geo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DSS Inc and Geo Group, you can compare the effects of market volatilities on DSS and Geo 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 DSS with a short position of Geo. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and Geo.

Diversification Opportunities for DSS and Geo

-0.85

Correlation Coefficient

DSS  Geo

Pay attention - limited upside

The 3 months correlation between DSS and Geo is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and Geo Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geo Group and DSS 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 DSS Inc are associated (or correlated) with Geo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geo Group has no effect on the direction of DSS i.e., DSS and Geo go up and down completely randomly.

Pair Corralation between DSS and Geo

Considering the 90-day investment horizon DSS Inc is expected to under-perform the Geo. In addition to that, DSS is 1.35 times more volatile than Geo Group. It trades about -0.03 of its total potential returns per unit of risk. Geo Group is currently generating about 0.07 per unit of volatility. If you would invest  1,134  in Geo Group on September 14, 2024 and sell it today you would earn a total of  1,602  from holding Geo Group or generate 141.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

DSS Inc  vs.  Geo Group

DSS Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Geo Group

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Geo Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Geo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DSS and Geo

The main advantage of trading using opposite DSS and Geo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSS position performs unexpectedly, Geo 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 Geo will offset losses from the drop in Geo's long position.

The idea behind DSS Inc and Geo Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.