Correlation Between Global Crossing and Advent Wireless

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

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

Diversification Opportunities for Global Crossing and Advent Wireless

0.44

Correlation Coefficient

Global Crossing  Advent Wireless

Very weak diversification

The 3 months correlation between Global and Advent is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and Advent Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Wireless and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with Advent Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Wireless has no effect on the direction of Global Crossing i.e., Global Crossing and Advent Wireless go up and down completely randomly.

Pair Corralation between Global Crossing and Advent Wireless

Assuming the 90 days trading horizon Global Crossing Airlines is expected to generate 1.23 times more return on investment than Advent Wireless. However, Global Crossing is 1.23 times more volatile than Advent Wireless. It trades about 0.0 of its potential returns per unit of risk. Advent Wireless is currently generating about -0.07 per unit of risk. If you would invest  86.00  in Global Crossing Airlines on April 25, 2025 and sell it today you would lose (3.00) from holding Global Crossing Airlines or give up 3.49% of portfolio value over 90 days.

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

Global Crossing Airlines  vs.  Advent Wireless

Global Crossing Airlines

Risk-Adjusted Performance

Weak

Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Global Crossing is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Advent Wireless

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advent Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Global Crossing and Advent Wireless

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

The idea behind Global Crossing Airlines and Advent Wireless 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.

Check out your portfolio center.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.