Correlation Between GD Culture and Blue Hat
Can any of the company-specific risk be diversified away by investing in both GD Culture and Blue Hat 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 GD Culture and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GD Culture Group and Blue Hat Interactive, you can compare the effects of market volatilities on GD Culture and Blue Hat 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 GD Culture with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Culture and Blue Hat.
Diversification Opportunities for GD Culture and Blue Hat
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GDC and Blue is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive and GD Culture 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 GD Culture Group are associated (or correlated) with Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of GD Culture i.e., GD Culture and Blue Hat go up and down completely randomly.
Pair Corralation between GD Culture and Blue Hat
Considering the 90-day investment horizon GD Culture Group is expected to generate 0.32 times more return on investment than Blue Hat. However, GD Culture Group is 3.13 times less risky than Blue Hat. It trades about -0.45 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about -0.15 per unit of risk. If you would invest 193.00 in GD Culture Group on November 9, 2024 and sell it today you would lose (65.00) from holding GD Culture Group or give up 33.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Culture Group vs. Blue Hat Interactive
Performance |
| Timeline |
| GD Culture Group |
| Blue Hat Interactive |
GD Culture and Blue Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Culture and Blue Hat
The main advantage of trading using opposite GD Culture and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Culture position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.| GD Culture vs. Blue Hat Interactive | GD Culture vs. Playstudios | GD Culture vs. Motorsport Gaming Us | GD Culture vs. Alpha Esports Tech |
| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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