Correlation Between GD Culture and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both GD Culture and GameSquare Holdings 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 GameSquare Holdings 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 GameSquare Holdings, you can compare the effects of market volatilities on GD Culture and GameSquare Holdings 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 GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Culture and GameSquare Holdings.
Diversification Opportunities for GD Culture and GameSquare Holdings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GDC and GameSquare is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings 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 GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of GD Culture i.e., GD Culture and GameSquare Holdings go up and down completely randomly.
Pair Corralation between GD Culture and GameSquare Holdings
Considering the 90-day investment horizon GD Culture Group is expected to generate 2.13 times more return on investment than GameSquare Holdings. However, GD Culture is 2.13 times more volatile than GameSquare Holdings. It trades about 0.23 of its potential returns per unit of risk. GameSquare Holdings is currently generating about 0.11 per unit of risk. If you would invest 155.00 in GD Culture Group on August 31, 2024 and sell it today you would earn a total of 103.00 from holding GD Culture Group or generate 66.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Culture Group vs. GameSquare Holdings
Performance |
| Timeline |
| GD Culture Group |
| GameSquare Holdings |
GD Culture and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Culture and GameSquare Holdings
The main advantage of trading using opposite GD Culture and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Culture position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| GD Culture vs. Blue Hat Interactive | GD Culture vs. Playstudios | GD Culture vs. Motorsport Gaming Us | GD Culture vs. Alpha Esports Tech |
| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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