Correlation Between GD Culture and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both GD Culture and Doubledown Interactive 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 Doubledown Interactive 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 Doubledown Interactive Co, you can compare the effects of market volatilities on GD Culture and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Culture and Doubledown Interactive.
Diversification Opportunities for GD Culture and Doubledown Interactive
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GDC and Doubledown is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of GD Culture i.e., GD Culture and Doubledown Interactive go up and down completely randomly.
Pair Corralation between GD Culture and Doubledown Interactive
Considering the 90-day investment horizon GD Culture Group is expected to under-perform the Doubledown Interactive. In addition to that, GD Culture is 1.75 times more volatile than Doubledown Interactive Co. It trades about -0.45 of its total potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.07 per unit of volatility. If you would invest 1,084 in Doubledown Interactive Co on November 9, 2024 and sell it today you would lose (44.00) from holding Doubledown Interactive Co or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Culture Group vs. Doubledown Interactive Co
Performance |
| Timeline |
| GD Culture Group |
| Doubledown Interactive |
GD Culture and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Culture and Doubledown Interactive
The main advantage of trading using opposite GD Culture and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Culture position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive'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 |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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