Correlation Between GD Culture and Victory Square
Can any of the company-specific risk be diversified away by investing in both GD Culture and Victory Square 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 Victory Square 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 Victory Square Technologies, you can compare the effects of market volatilities on GD Culture and Victory Square 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 Victory Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Culture and Victory Square.
Diversification Opportunities for GD Culture and Victory Square
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GDC and Victory is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and Victory Square Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Square Techn 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 Victory Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Square Techn has no effect on the direction of GD Culture i.e., GD Culture and Victory Square go up and down completely randomly.
Pair Corralation between GD Culture and Victory Square
Considering the 90-day investment horizon GD Culture is expected to generate 8.44 times less return on investment than Victory Square. But when comparing it to its historical volatility, GD Culture Group is 1.15 times less risky than Victory Square. It trades about 0.03 of its potential returns per unit of risk. Victory Square Technologies is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 7.96 in Victory Square Technologies on November 1, 2024 and sell it today you would earn a total of 21.04 from holding Victory Square Technologies or generate 264.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Culture Group vs. Victory Square Technologies
Performance |
| Timeline |
| GD Culture Group |
| Victory Square Techn |
GD Culture and Victory Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Culture and Victory Square
The main advantage of trading using opposite GD Culture and Victory Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Culture position performs unexpectedly, Victory Square 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 Victory Square will offset losses from the drop in Victory Square'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 |
| Victory Square vs. GameSquare Holdings | Victory Square vs. Nexon Co Ltd | Victory Square vs. i3 Interactive | Victory Square 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |