Correlation Between Fair Oaks and GSTechnologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fair Oaks and GSTechnologies 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 Fair Oaks and GSTechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Oaks Income and GSTechnologies, you can compare the effects of market volatilities on Fair Oaks and GSTechnologies 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 Fair Oaks with a short position of GSTechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Oaks and GSTechnologies.

Diversification Opportunities for Fair Oaks and GSTechnologies

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Fair and GSTechnologies is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fair Oaks Income and GSTechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSTechnologies and Fair Oaks 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 Fair Oaks Income are associated (or correlated) with GSTechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSTechnologies has no effect on the direction of Fair Oaks i.e., Fair Oaks and GSTechnologies go up and down completely randomly.

Pair Corralation between Fair Oaks and GSTechnologies

Assuming the 90 days trading horizon Fair Oaks is expected to generate 30.88 times less return on investment than GSTechnologies. But when comparing it to its historical volatility, Fair Oaks Income is 15.48 times less risky than GSTechnologies. It trades about 0.12 of its potential returns per unit of risk. GSTechnologies is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  78.00  in GSTechnologies on September 25, 2024 and sell it today you would earn a total of  130.00  from holding GSTechnologies or generate 166.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Fair Oaks Income  vs.  GSTechnologies

 Performance 
       Timeline  
Fair Oaks Income 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Fair Oaks Income are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fair Oaks is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
GSTechnologies 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in GSTechnologies are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, GSTechnologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Fair Oaks and GSTechnologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fair Oaks and GSTechnologies

The main advantage of trading using opposite Fair Oaks and GSTechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Oaks position performs unexpectedly, GSTechnologies 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 GSTechnologies will offset losses from the drop in GSTechnologies' long position.
The idea behind Fair Oaks Income and GSTechnologies 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.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Fundamental Analysis
View fundamental data based on most recent published financial statements