Correlation Between GEE and STADION TRILOGY

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

Diversification Opportunities for GEE and STADION TRILOGY

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GEE and STADION is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and STADION TRILOGY ALTERNATIVE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STADION TRILOGY ALTE and GEE 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 GEE Group are associated (or correlated) with STADION TRILOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STADION TRILOGY ALTE has no effect on the direction of GEE i.e., GEE and STADION TRILOGY go up and down completely randomly.

Pair Corralation between GEE and STADION TRILOGY

Considering the 90-day investment horizon GEE Group is expected to generate 12.92 times more return on investment than STADION TRILOGY. However, GEE is 12.92 times more volatile than STADION TRILOGY ALTERNATIVE. It trades about 0.01 of its potential returns per unit of risk. STADION TRILOGY ALTERNATIVE is currently generating about -0.04 per unit of risk. If you would invest  103.00  in GEE Group on September 8, 2022 and sell it today you would lose (28.00)  from holding GEE Group or give up 27.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.8%
ValuesDaily Returns

GEE Group  vs.  STADION TRILOGY ALTERNATIVE

 Performance (%) 
       Timeline  
GEE Group 
GEE Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in GEE Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, GEE may actually be approaching a critical reversion point that can send shares even higher in January 2023.

GEE Price Channel

STADION TRILOGY ALTE 
STADION Performance
0 of 100
Over the last 90 days STADION TRILOGY ALTERNATIVE has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, STADION TRILOGY is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

STADION Price Channel

GEE and STADION TRILOGY Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GEE and STADION TRILOGY

The main advantage of trading using opposite GEE and STADION TRILOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEE position performs unexpectedly, STADION TRILOGY 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 STADION TRILOGY will offset losses from the drop in STADION TRILOGY's long position.
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The idea behind GEE Group and STADION TRILOGY ALTERNATIVE 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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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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