Correlation Between GIBO Holdings and Red Oak
Can any of the company-specific risk be diversified away by investing in both GIBO Holdings and Red Oak 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 GIBO Holdings and Red Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GIBO Holdings Limited and Red Oak Technology, you can compare the effects of market volatilities on GIBO Holdings and Red Oak 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 GIBO Holdings with a short position of Red Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of GIBO Holdings and Red Oak.
Diversification Opportunities for GIBO Holdings and Red Oak
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GIBO and Red is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding GIBO Holdings Limited and Red Oak Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Oak Technology and GIBO Holdings 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 GIBO Holdings Limited are associated (or correlated) with Red Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Oak Technology has no effect on the direction of GIBO Holdings i.e., GIBO Holdings and Red Oak go up and down completely randomly.
Pair Corralation between GIBO Holdings and Red Oak
Assuming the 90 days horizon GIBO Holdings Limited is expected to generate 39.05 times more return on investment than Red Oak. However, GIBO Holdings is 39.05 times more volatile than Red Oak Technology. It trades about 0.1 of its potential returns per unit of risk. Red Oak Technology is currently generating about 0.23 per unit of risk. If you would invest 10.00 in GIBO Holdings Limited on June 3, 2025 and sell it today you would lose (5.37) from holding GIBO Holdings Limited or give up 53.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
GIBO Holdings Limited vs. Red Oak Technology
Performance |
| Timeline |
| GIBO Holdings Limited |
| Red Oak Technology |
GIBO Holdings and Red Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GIBO Holdings and Red Oak
The main advantage of trading using opposite GIBO Holdings and Red Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GIBO Holdings position performs unexpectedly, Red Oak 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 Red Oak will offset losses from the drop in Red Oak's long position.| GIBO Holdings vs. Quaker Chemical | GIBO Holdings vs. Arq Inc | GIBO Holdings vs. DiamondRock Hospitality | GIBO Holdings vs. The Cheesecake Factory |
| Red Oak vs. Black Oak Emerging | Red Oak vs. Berkshire Focus | Red Oak vs. Morningstar Unconstrained Allocation | Red Oak vs. Thrivent High Yield |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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