Correlation Between GD Culture and GameOn Entertainment
Can any of the company-specific risk be diversified away by investing in both GD Culture and GameOn Entertainment 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 GameOn Entertainment 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 GameOn Entertainment Technologies, you can compare the effects of market volatilities on GD Culture and GameOn Entertainment 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 GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Culture and GameOn Entertainment.
Diversification Opportunities for GD Culture and GameOn Entertainment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GDC and GameOn is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment 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 GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of GD Culture i.e., GD Culture and GameOn Entertainment go up and down completely randomly.
Pair Corralation between GD Culture and GameOn Entertainment
Considering the 90-day investment horizon GD Culture Group is expected to generate 3.85 times more return on investment than GameOn Entertainment. However, GD Culture is 3.85 times more volatile than GameOn Entertainment Technologies. It trades about 0.05 of its potential returns per unit of risk. GameOn Entertainment Technologies is currently generating about 0.03 per unit of risk. If you would invest 259.00 in GD Culture Group on September 3, 2024 and sell it today you would earn a total of 2.00 from holding GD Culture Group or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GD Culture Group vs. GameOn Entertainment Technolog
Performance |
| Timeline |
| GD Culture Group |
| GameOn Entertainment |
GD Culture and GameOn Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Culture and GameOn Entertainment
The main advantage of trading using opposite GD Culture and GameOn Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Culture position performs unexpectedly, GameOn Entertainment 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 GameOn Entertainment will offset losses from the drop in GameOn Entertainment'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 |
| GameOn Entertainment vs. NEXON Co | GameOn Entertainment vs. Playstudios | GameOn Entertainment vs. Doubledown Interactive Co | GameOn Entertainment vs. Bragg Gaming Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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