Correlation Between Caspian Services and Global Acquisitions

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

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

Diversification Opportunities for Caspian Services and Global Acquisitions

0.12

Correlation Coefficient

Caspian Services  Global Acquisitions

Average diversification

The 3 months correlation between Caspian and Global is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Caspian Services and Global Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Acquisitions and Caspian Services 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 Caspian Services are associated (or correlated) with Global Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Acquisitions has no effect on the direction of Caspian Services i.e., Caspian Services and Global Acquisitions go up and down completely randomly.

Pair Corralation between Caspian Services and Global Acquisitions

Given the investment horizon of 90 days Caspian Services is expected to under-perform the Global Acquisitions. In addition to that, Caspian Services is 1.4 times more volatile than Global Acquisitions. It trades about -0.13 of its total potential returns per unit of risk. Global Acquisitions is currently generating about 0.07 per unit of volatility. If you would invest  603.00  in Global Acquisitions on May 16, 2025 and sell it today you would earn a total of  96.00  from holding Global Acquisitions or generate 15.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Caspian Services  vs.  Global Acquisitions

Caspian Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Caspian Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Global Acquisitions

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Global Acquisitions are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Global Acquisitions reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Caspian Services and Global Acquisitions

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

The idea behind Caspian Services and Global Acquisitions 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.