Correlation Between Gorilla Technology and Cuentas

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

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

Diversification Opportunities for Gorilla Technology and Cuentas

-0.44

Correlation Coefficient

Gorilla Technology  Cuentas

Very good diversification

The 3 months correlation between Gorilla and Cuentas is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gorilla Technology Group and Cuentas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuentas and Gorilla Technology 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 Gorilla Technology Group are associated (or correlated) with Cuentas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuentas has no effect on the direction of Gorilla Technology i.e., Gorilla Technology and Cuentas go up and down completely randomly.

Pair Corralation between Gorilla Technology and Cuentas

If you would invest  389.00  in Gorilla Technology Group on September 16, 2024 and sell it today you would earn a total of  499.00  from holding Gorilla Technology Group or generate 128.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.54%
Values	Daily Returns

Gorilla Technology Group  vs.  Cuentas

Gorilla Technology

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gorilla Technology Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Gorilla Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Cuentas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cuentas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Cuentas is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Gorilla Technology and Cuentas

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

The idea behind Gorilla Technology Group and Cuentas 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.