Correlation Between GRIT REAL and LOTTOTECH

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

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

Diversification Opportunities for GRIT REAL and LOTTOTECH

0.67

Correlation Coefficient

GRIT REAL  LOTTOTECH

Poor diversification

The 3 months correlation between GRIT and LOTTOTECH is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GRIT REAL ESTATE and LOTTOTECH LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOTTOTECH LTD and GRIT REAL 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 GRIT REAL ESTATE are associated (or correlated) with LOTTOTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOTTOTECH LTD has no effect on the direction of GRIT REAL i.e., GRIT REAL and LOTTOTECH go up and down completely randomly.

Pair Corralation between GRIT REAL and LOTTOTECH

Assuming the 90 days trading horizon GRIT REAL ESTATE is expected to under-perform the LOTTOTECH. In addition to that, GRIT REAL is 4.12 times more volatile than LOTTOTECH LTD. It trades about -0.16 of its total potential returns per unit of risk. LOTTOTECH LTD is currently generating about -0.09 per unit of volatility. If you would invest  426.00  in LOTTOTECH LTD on April 24, 2025 and sell it today you would lose (28.00) from holding LOTTOTECH LTD or give up 6.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

GRIT REAL ESTATE  vs.  LOTTOTECH LTD

GRIT REAL ESTATE

Risk-Adjusted Performance

Very Weak

Over the last 90 days GRIT REAL ESTATE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

LOTTOTECH LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOTTOTECH LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with GRIT REAL and LOTTOTECH

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

The idea behind GRIT REAL ESTATE and LOTTOTECH LTD 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.