Correlation Between Gatekeeper Systems and Eurocell Plc

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

By analyzing existing cross correlation between Gatekeeper Systems and Eurocell plc, you can compare the effects of market volatilities on Gatekeeper Systems and Eurocell Plc 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 Gatekeeper Systems with a short position of Eurocell Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatekeeper Systems and Eurocell Plc.

Diversification Opportunities for Gatekeeper Systems and Eurocell Plc

-0.66

Correlation Coefficient

Gatekeeper Systems  Eurocell Plc

Excellent diversification

The 3 months correlation between Gatekeeper and Eurocell is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gatekeeper Systems and Eurocell plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurocell plc and Gatekeeper Systems 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 Gatekeeper Systems are associated (or correlated) with Eurocell Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurocell plc has no effect on the direction of Gatekeeper Systems i.e., Gatekeeper Systems and Eurocell Plc go up and down completely randomly.

Pair Corralation between Gatekeeper Systems and Eurocell Plc

Assuming the 90 days horizon Gatekeeper Systems is expected to generate 3.71 times more return on investment than Eurocell Plc. However, Gatekeeper Systems is 3.71 times more volatile than Eurocell plc. It trades about 0.06 of its potential returns per unit of risk. Eurocell plc is currently generating about -0.12 per unit of risk. If you would invest  133.00  in Gatekeeper Systems on September 13, 2025 and sell it today you would earn a total of  17.00  from holding Gatekeeper Systems or generate 12.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Gatekeeper Systems  vs.  Eurocell plc

Gatekeeper Systems

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Gatekeeper Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Gatekeeper Systems reported solid returns over the last few months and may actually be approaching a breakup point.

Eurocell plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Eurocell plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Gatekeeper Systems and Eurocell Plc

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

The idea behind Gatekeeper Systems and Eurocell plc 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.