Correlation Between GD Entertainment and American International
Can any of the company-specific risk be diversified away by investing in both GD Entertainment and American International 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 Entertainment and American International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GD Entertainment Technology and American International Holdings, you can compare the effects of market volatilities on GD Entertainment and American International 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 Entertainment with a short position of American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Entertainment and American International.
Diversification Opportunities for GD Entertainment and American International
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GDET and American is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding GD Entertainment Technology and American International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International and GD Entertainment 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 Entertainment Technology are associated (or correlated) with American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of GD Entertainment i.e., GD Entertainment and American International go up and down completely randomly.
Pair Corralation between GD Entertainment and American International
If you would invest 0.01 in American International Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding American International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Entertainment Technology vs. American International Holding
Performance |
| Timeline |
| GD Entertainment Tec |
| American International |
GD Entertainment and American International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Entertainment and American International
The main advantage of trading using opposite GD Entertainment and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Entertainment position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.| GD Entertainment vs. Chester Mining | GD Entertainment vs. Park Hotels Resorts | GD Entertainment vs. BJs Restaurants | GD Entertainment vs. Oasis Hotel Resort |
| American International vs. DTE Energy | American International vs. Rollins | American International vs. Service International | American International vs. HR Block |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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