Correlation Between G1 Secure and Space

Can any of the company-specific risk be diversified away by investing in both G1 Secure and Space 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 G1 Secure and Space into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between G1 Secure Solutions and Space Com, you can compare the effects of market volatilities on G1 Secure and Space 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 G1 Secure with a short position of Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of G1 Secure and Space.

Diversification Opportunities for G1 Secure and Space

-0.59

Correlation Coefficient

G1 Secure  Space

Excellent diversification

The 3 months correlation between GOSS and Space is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding G1 Secure Solutions and Space Com in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Com and G1 Secure 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 G1 Secure Solutions are associated (or correlated) with Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Com has no effect on the direction of G1 Secure i.e., G1 Secure and Space go up and down completely randomly.

Pair Corralation between G1 Secure and Space

Assuming the 90 days trading horizon G1 Secure Solutions is expected to generate 0.51 times more return on investment than Space. However, G1 Secure Solutions is 1.96 times less risky than Space. It trades about 0.12 of its potential returns per unit of risk. Space Com is currently generating about 0.0 per unit of risk. If you would invest  50,050  in G1 Secure Solutions on April 24, 2025 and sell it today you would earn a total of  9,950  from holding G1 Secure Solutions or generate 19.88% return on investment over 90 days.

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

G1 Secure Solutions  vs.  Space Com

G1 Secure Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in G1 Secure Solutions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, G1 Secure sustained solid returns over the last few months and may actually be approaching a breakup point.

Space Com

Risk-Adjusted Performance

Very Weak

Over the last 90 days Space Com has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Space is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with G1 Secure and Space

The main advantage of trading using opposite G1 Secure and Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G1 Secure position performs unexpectedly, Space 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 Space will offset losses from the drop in Space's long position.

The idea behind G1 Secure Solutions and Space Com 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.