Correlation Between Great Basin and Xtrackers MSCI

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

By analyzing existing cross correlation between Great Basin Energies and Xtrackers MSCI EAFE, you can compare the effects of market volatilities on Great Basin and Xtrackers MSCI 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 Great Basin with a short position of Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Basin and Xtrackers MSCI.

Diversification Opportunities for Great Basin and Xtrackers MSCI

-0.72

Correlation Coefficient

Great Basin  Xtrackers MSCI

Pay attention - limited upside

The 3 months correlation between Great and Xtrackers is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Great Basin Energies and Xtrackers MSCI EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI EAFE and Great Basin 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 Great Basin Energies are associated (or correlated) with Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI EAFE has no effect on the direction of Great Basin i.e., Great Basin and Xtrackers MSCI go up and down completely randomly.

Pair Corralation between Great Basin and Xtrackers MSCI

If you would invest  5.01  in Great Basin Energies on July 19, 2024 and sell it today you would earn a total of  0.00  from holding Great Basin Energies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Great Basin Energies  vs.  Xtrackers MSCI EAFE

Great Basin Energies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Great Basin Energies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in November 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Xtrackers MSCI EAFE

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Xtrackers MSCI EAFE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Xtrackers MSCI is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Great Basin and Xtrackers MSCI

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

The idea behind Great Basin Energies and Xtrackers MSCI EAFE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.