Correlation Between GEE and Cytodyn

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

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

Diversification Opportunities for GEE and Cytodyn

0.11

Correlation Coefficient

GEE  Cytodyn

Average diversification

The 3 months correlation between GEE and Cytodyn is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and Cytodyn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytodyn and GEE 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 GEE Group are associated (or correlated) with Cytodyn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytodyn has no effect on the direction of GEE i.e., GEE and Cytodyn go up and down completely randomly.

Pair Corralation between GEE and Cytodyn

Considering the 90-day investment horizon GEE Group is expected to under-perform the Cytodyn. But the stock apears to be less risky and, when comparing its historical volatility, GEE Group is 1.81 times less risky than Cytodyn. The stock trades about -0.26 of its potential returns per unit of risk. The Cytodyn is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Cytodyn on January 18, 2024 and sell it today you would lose (2.00) from holding Cytodyn or give up 11.76% of portfolio value over 90 days.

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

GEE Group  vs.  Cytodyn

GEE Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GEE Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Cytodyn

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cytodyn are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Cytodyn may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with GEE and Cytodyn

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

The idea behind GEE Group and Cytodyn 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.