Correlation Between GigaCloud Technology and Nuvei Corp
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and Nuvei 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 Nuvei 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 Nuvei Corp, you can compare the effects of market volatilities on GigaCloud Technology and Nuvei 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 Nuvei Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Nuvei Corp.
Diversification Opportunities for GigaCloud Technology and Nuvei Corp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GigaCloud and Nuvei is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Nuvei Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvei 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 Nuvei Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvei Corp has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and Nuvei Corp go up and down completely randomly.
Pair Corralation between GigaCloud Technology and Nuvei Corp
Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 17.44 times more return on investment than Nuvei Corp. However, GigaCloud Technology is 17.44 times more volatile than Nuvei Corp. It trades about 0.09 of its potential returns per unit of risk. Nuvei Corp is currently generating about 0.19 per unit of risk. If you would invest 2,277 in GigaCloud Technology Class on September 1, 2024 and sell it today you would earn a total of 193.00 from holding GigaCloud Technology Class or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
GigaCloud Technology Class vs. Nuvei Corp
Performance |
| Timeline |
| GigaCloud Technology |
| Nuvei Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
GigaCloud Technology and Nuvei Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and Nuvei Corp
The main advantage of trading using opposite GigaCloud Technology and Nuvei Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology position performs unexpectedly, Nuvei 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 Nuvei Corp will offset losses from the drop in Nuvei Corp's long position.| GigaCloud Technology vs. Steven Madden | GigaCloud Technology vs. Vera Bradley | GigaCloud Technology vs. Caleres | GigaCloud Technology vs. Wolverine World Wide |
| Nuvei Corp vs. Robinhood Markets | Nuvei Corp vs. Palantir Technologies Class | Nuvei Corp vs. GigaCloud Technology Class | Nuvei Corp vs. Crowdstrike Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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