Correlation Between GigaCloud Technology and AppTech Payments
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and AppTech Payments 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 Payments 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 Payments Corp, you can compare the effects of market volatilities on GigaCloud Technology and AppTech Payments 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 Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and AppTech Payments.
Diversification Opportunities for GigaCloud Technology and AppTech Payments
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GigaCloud and AppTech is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and AppTech Payments Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppTech Payments 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 Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppTech Payments Corp has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and AppTech Payments go up and down completely randomly.
Pair Corralation between GigaCloud Technology and AppTech Payments
Considering the 90-day investment horizon GigaCloud Technology is expected to generate 12.94 times less return on investment than AppTech Payments. But when comparing it to its historical volatility, GigaCloud Technology Class is 11.58 times less risky than AppTech Payments. It trades about 0.07 of its potential returns per unit of risk. AppTech Payments Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18.00 in AppTech Payments Corp on August 26, 2024 and sell it today you would earn a total of 2.00 from holding AppTech Payments Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.92% |
| Values | Daily Returns |
GigaCloud Technology Class vs. AppTech Payments Corp
Performance |
| Timeline |
| GigaCloud Technology |
| AppTech Payments Corp |
GigaCloud Technology and AppTech Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and AppTech Payments
The main advantage of trading using opposite GigaCloud Technology and AppTech Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology position performs unexpectedly, AppTech Payments 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 Payments will offset losses from the drop in AppTech Payments' long position.| GigaCloud Technology vs. Steven Madden | GigaCloud Technology vs. Vera Bradley | GigaCloud Technology vs. Caleres | GigaCloud Technology vs. Rocky Brands |
| AppTech Payments vs. GigaCloud Technology Class | AppTech Payments vs. Arqit Quantum | AppTech Payments vs. Telos Corp | AppTech Payments 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |