Correlation Between GB Group and Transcosmos
Can any of the company-specific risk be diversified away by investing in both GB Group and Transcosmos 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 GB Group and Transcosmos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GB Group plc and transcosmos inc, you can compare the effects of market volatilities on GB Group and Transcosmos 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 GB Group with a short position of Transcosmos. Check out your portfolio center. Please also check ongoing floating volatility patterns of GB Group and Transcosmos.
Diversification Opportunities for GB Group and Transcosmos
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GBGPF and Transcosmos is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GB Group plc and transcosmos inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on transcosmos inc and GB Group 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 GB Group plc are associated (or correlated) with Transcosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of transcosmos inc has no effect on the direction of GB Group i.e., GB Group and Transcosmos go up and down completely randomly.
Pair Corralation between GB Group and Transcosmos
If you would invest 2,039 in transcosmos inc on September 20, 2025 and sell it today you would earn a total of 0.00 from holding transcosmos inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GB Group plc vs. transcosmos inc
Performance |
| Timeline |
| GB Group plc |
| transcosmos inc |
GB Group and Transcosmos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GB Group and Transcosmos
The main advantage of trading using opposite GB Group and Transcosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GB Group position performs unexpectedly, Transcosmos 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 Transcosmos will offset losses from the drop in Transcosmos' long position.| GB Group vs. Enghouse Systems Limited | GB Group vs. Better Collective AS | GB Group vs. TomTom NV | GB Group vs. Worldline SA |
| Transcosmos vs. Nagarro SE | Transcosmos vs. Deveron Corp | Transcosmos vs. adesso SE | Transcosmos vs. Enghouse Systems Limited |
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 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.
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