Correlation Between GlobalTech and Curiositystream

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

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

Diversification Opportunities for GlobalTech and Curiositystream

-0.51

Correlation Coefficient

GlobalTech  Curiositystream

Excellent diversification

The 3 months correlation between GlobalTech and Curiositystream is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GlobalTech and Curiositystream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curiositystream and GlobalTech 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 GlobalTech are associated (or correlated) with Curiositystream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curiositystream has no effect on the direction of GlobalTech i.e., GlobalTech and Curiositystream go up and down completely randomly.

Pair Corralation between GlobalTech and Curiositystream

Given the investment horizon of 90 days GlobalTech is expected to generate 2.34 times more return on investment than Curiositystream. However, GlobalTech is 2.34 times more volatile than Curiositystream. It trades about 0.02 of its potential returns per unit of risk. Curiositystream is currently generating about 0.02 per unit of risk. If you would invest  214.00  in GlobalTech on July 29, 2025 and sell it today you would lose (19.00) from holding GlobalTech or give up 8.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

GlobalTech  vs.  Curiositystream

GlobalTech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GlobalTech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, GlobalTech may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Curiositystream

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Curiositystream are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Curiositystream is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GlobalTech and Curiositystream

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

The idea behind GlobalTech and Curiositystream 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.