Correlation Between G Tec and Intellect Design

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

By analyzing existing cross correlation between G Tec Jainx Education and Intellect Design Arena, you can compare the effects of market volatilities on G Tec and Intellect Design 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 G Tec with a short position of Intellect Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Tec and Intellect Design.

Diversification Opportunities for G Tec and Intellect Design

-0.31

Correlation Coefficient

G Tec  Intellect Design

Very good diversification

The 3 months correlation between GTECJAINX and Intellect is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding G Tec Jainx Education and Intellect Design Arena in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellect Design Arena and G Tec 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 G Tec Jainx Education are associated (or correlated) with Intellect Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellect Design Arena has no effect on the direction of G Tec i.e., G Tec and Intellect Design go up and down completely randomly.

Pair Corralation between G Tec and Intellect Design

Assuming the 90 days trading horizon G Tec Jainx Education is expected to under-perform the Intellect Design. In addition to that, G Tec is 1.36 times more volatile than Intellect Design Arena. It trades about -0.01 of its total potential returns per unit of risk. Intellect Design Arena is currently generating about 0.27 per unit of volatility. If you would invest  76,354  in Intellect Design Arena on April 22, 2025 and sell it today you would earn a total of  40,876  from holding Intellect Design Arena or generate 53.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

G Tec Jainx Education  vs.  Intellect Design Arena

G Tec Jainx

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Tec Jainx Education has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, G Tec is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Intellect Design Arena

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intellect Design Arena are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Intellect Design exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with G Tec and Intellect Design

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

The idea behind G Tec Jainx Education and Intellect Design Arena 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.