Correlation Between Gatechain Token and SIX

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

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

Diversification Opportunities for Gatechain Token and SIX

-0.46

Correlation Coefficient

Gatechain Token  SIX

Very good diversification

The 3 months correlation between Gatechain and SIX is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gatechain Token and SIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIX and Gatechain Token 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 Gatechain Token are associated (or correlated) with SIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIX has no effect on the direction of Gatechain Token i.e., Gatechain Token and SIX go up and down completely randomly.

Pair Corralation between Gatechain Token and SIX

Assuming the 90 days horizon Gatechain Token is expected to under-perform the SIX. But the crypto coin apears to be less risky and, when comparing its historical volatility, Gatechain Token is 2.55 times less risky than SIX. The crypto coin trades about -0.21 of its potential returns per unit of risk. The SIX is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1.81  in SIX on April 21, 2025 and sell it today you would earn a total of  0.40  from holding SIX or generate 22.1% return on investment over 90 days.

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

Gatechain Token  vs.  SIX

Gatechain Token

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gatechain Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's 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 Gatechain Token shareholders.

SIX

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SIX are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, SIX exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gatechain Token and SIX

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

The idea behind Gatechain Token and SIX 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.