Correlation Between SSC Security and Gatekeeper Systems
Can any of the company-specific risk be diversified away by investing in both SSC Security and Gatekeeper Systems 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 SSC Security and Gatekeeper Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSC Security Services and Gatekeeper Systems, you can compare the effects of market volatilities on SSC Security and Gatekeeper Systems 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 SSC Security with a short position of Gatekeeper Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Security and Gatekeeper Systems.
Diversification Opportunities for SSC Security and Gatekeeper Systems
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SSC and Gatekeeper is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SSC Security Services and Gatekeeper Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatekeeper Systems and SSC Security 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 SSC Security Services are associated (or correlated) with Gatekeeper Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatekeeper Systems has no effect on the direction of SSC Security i.e., SSC Security and Gatekeeper Systems go up and down completely randomly.
Pair Corralation between SSC Security and Gatekeeper Systems
Assuming the 90 days trading horizon SSC Security is expected to generate 13.08 times less return on investment than Gatekeeper Systems. But when comparing it to its historical volatility, SSC Security Services is 2.94 times less risky than Gatekeeper Systems. It trades about 0.07 of its potential returns per unit of risk. Gatekeeper Systems is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Gatekeeper Systems on April 24, 2025 and sell it today you would earn a total of 93.00 from holding Gatekeeper Systems or generate 221.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
SSC Security Services vs. Gatekeeper Systems
Performance |
Timeline |
SSC Security Services |
Gatekeeper Systems |
SSC Security and Gatekeeper Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSC Security and Gatekeeper Systems
The main advantage of trading using opposite SSC Security and Gatekeeper Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Security position performs unexpectedly, Gatekeeper Systems 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 Gatekeeper Systems will offset losses from the drop in Gatekeeper Systems' long position.SSC Security vs. Allegion PLC | SSC Security vs. Geo Group | SSC Security vs. Guardforce AI Co | SSC Security vs. Propel Holdings |
Gatekeeper Systems vs. Gatekeeper Systems | Gatekeeper Systems vs. SSC Security Services | Gatekeeper Systems vs. Avante Logixx | Gatekeeper Systems vs. Kraken Robotics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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