Correlation Between Gemini Group and Global Develpmts

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

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

Diversification Opportunities for Gemini Group and Global Develpmts

-0.1

Correlation Coefficient

Gemini Group  Global Develpmts

Good diversification

The 3 months correlation between Gemini and Global is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gemini Group Global and Global Develpmts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Develpmts and Gemini Group 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 Gemini Group Global are associated (or correlated) with Global Develpmts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Develpmts has no effect on the direction of Gemini Group i.e., Gemini Group and Global Develpmts go up and down completely randomly.

Pair Corralation between Gemini Group and Global Develpmts

If you would invest  0.35  in Gemini Group Global on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Gemini Group Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Gemini Group Global  vs.  Global Develpmts

Gemini Group Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gemini Group Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Gemini Group is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Global Develpmts

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Develpmts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Global Develpmts is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Gemini Group and Global Develpmts

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

The idea behind Gemini Group Global and Global Develpmts 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.