Correlation Between GigaCloud Technology and CiT
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and CiT 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 CiT 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 CiT Inc, you can compare the effects of market volatilities on GigaCloud Technology and CiT 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 CiT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and CiT.
Diversification Opportunities for GigaCloud Technology and CiT
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GigaCloud and CiT is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc 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 CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and CiT go up and down completely randomly.
Pair Corralation between GigaCloud Technology and CiT
Considering the 90-day investment horizon GigaCloud Technology is expected to generate 4.07 times less return on investment than CiT. In addition to that, GigaCloud Technology is 1.96 times more volatile than CiT Inc. It trades about 0.01 of its total potential returns per unit of risk. CiT Inc is currently generating about 0.08 per unit of volatility. If you would invest 430.00 in CiT Inc on November 3, 2024 and sell it today you would earn a total of 266.00 from holding CiT Inc or generate 61.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaCloud Technology Class vs. CiT Inc
Performance |
| Timeline |
| GigaCloud Technology |
| CiT Inc |
GigaCloud Technology and CiT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and CiT
The main advantage of trading using opposite GigaCloud Technology and CiT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology position performs unexpectedly, CiT 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 CiT will offset losses from the drop in CiT's long position.| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
| CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |