Correlation Between Doubledown Interactive and GD Culture

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Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and GD Culture 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 Doubledown Interactive and GD Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and GD Culture Group, you can compare the effects of market volatilities on Doubledown Interactive and GD Culture 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 Doubledown Interactive with a short position of GD Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and GD Culture.

Diversification Opportunities for Doubledown Interactive and GD Culture

DoubledownGDCDiversified AwayDoubledownGDCDiversified Away100%
0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Doubledown and GDC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and GD Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Culture Group and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with GD Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Culture Group has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and GD Culture go up and down completely randomly.

Pair Corralation between Doubledown Interactive and GD Culture

Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 0.68 times more return on investment than GD Culture. However, Doubledown Interactive Co is 1.47 times less risky than GD Culture. It trades about -0.06 of its potential returns per unit of risk. GD Culture Group is currently generating about -0.43 per unit of risk. If you would invest  1,040  in Doubledown Interactive Co on November 25, 2024 and sell it today you would lose (44.00) from holding Doubledown Interactive Co or give up 4.23% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Doubledown Interactive Co  vs.  GD Culture Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -60-50-40-30-20-10
JavaScript chart by amCharts 3.21.15DDI GDC
       Timeline  
Doubledown Interactive 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb101112131415
GD Culture Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days GD Culture Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.522.5

Doubledown Interactive and GD Culture Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.35-4.01-2.67-1.32-0.01811.052.133.224.35.38 0.0150.0200.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15DDI GDC
       Returns  

Pair Trading with Doubledown Interactive and GD Culture

The main advantage of trading using opposite Doubledown Interactive and GD Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, GD Culture 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 GD Culture will offset losses from the drop in GD Culture's long position.
The idea behind Doubledown Interactive Co and GD Culture Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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