Correlation Between GigaCloud Technology and Apptech Corp
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and Apptech Corp 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 GigaCloud Technology and Apptech Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaCloud Technology Class and Apptech Corp, you can compare the effects of market volatilities on GigaCloud Technology and Apptech Corp 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 GigaCloud Technology with a short position of Apptech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Apptech Corp.
Diversification Opportunities for GigaCloud Technology and Apptech Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GigaCloud and Apptech is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp and GigaCloud Technology 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 GigaCloud Technology Class are associated (or correlated) with Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and Apptech Corp go up and down completely randomly.
Pair Corralation between GigaCloud Technology and Apptech Corp
Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 1.04 times more return on investment than Apptech Corp. However, GigaCloud Technology is 1.04 times more volatile than Apptech Corp. It trades about 0.1 of its potential returns per unit of risk. Apptech Corp is currently generating about -0.08 per unit of risk. If you would invest 1,969 in GigaCloud Technology Class on August 28, 2024 and sell it today you would earn a total of 580.00 from holding GigaCloud Technology Class or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaCloud Technology Class vs. Apptech Corp
Performance |
| Timeline |
| GigaCloud Technology |
| Apptech Corp |
GigaCloud Technology and Apptech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and Apptech Corp
The main advantage of trading using opposite GigaCloud Technology and Apptech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology position performs unexpectedly, Apptech Corp 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 Apptech Corp will offset losses from the drop in Apptech Corp's long position.| GigaCloud Technology vs. Steven Madden | GigaCloud Technology vs. Vera Bradley | GigaCloud Technology vs. Caleres | GigaCloud Technology vs. Rocky Brands |
| Apptech Corp vs. GigaCloud Technology Class | Apptech Corp vs. Arqit Quantum | Apptech Corp vs. Telos Corp | Apptech Corp vs. Cemtrex |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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