Correlation Between GameSquare Holdings and GD Culture
Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings 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 GameSquare Holdings and GD Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameSquare Holdings and GD Culture Group, you can compare the effects of market volatilities on GameSquare Holdings 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 GameSquare Holdings with a short position of GD Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and GD Culture.
Diversification Opportunities for GameSquare Holdings and GD Culture
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GameSquare and GDC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings 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 GameSquare 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 GameSquare Holdings 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 GameSquare Holdings i.e., GameSquare Holdings and GD Culture go up and down completely randomly.
Pair Corralation between GameSquare Holdings and GD Culture
Given the investment horizon of 90 days GameSquare Holdings is expected to generate 0.84 times more return on investment than GD Culture. However, GameSquare Holdings is 1.19 times less risky than GD Culture. It trades about 0.08 of its potential returns per unit of risk. GD Culture Group is currently generating about -0.45 per unit of risk. If you would invest 85.00 in GameSquare Holdings on November 9, 2024 and sell it today you would earn a total of 4.00 from holding GameSquare Holdings or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameSquare Holdings vs. GD Culture Group
Performance |
| Timeline |
| GameSquare Holdings |
| GD Culture Group |
GameSquare Holdings and GD Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameSquare Holdings and GD Culture
The main advantage of trading using opposite GameSquare Holdings and GD Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings 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.| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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