Correlation Between GD Entertainment and Mister Car
Can any of the company-specific risk be diversified away by investing in both GD Entertainment and Mister Car 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 Mister Car 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 Mister Car Wash, you can compare the effects of market volatilities on GD Entertainment and Mister Car 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 Mister Car. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Entertainment and Mister Car.
Diversification Opportunities for GD Entertainment and Mister Car
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GDET and Mister is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GD Entertainment Technology and Mister Car Wash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mister Car Wash 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 Mister Car. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mister Car Wash has no effect on the direction of GD Entertainment i.e., GD Entertainment and Mister Car go up and down completely randomly.
Pair Corralation between GD Entertainment and Mister Car
If you would invest 649.00 in Mister Car Wash on August 28, 2024 and sell it today you would earn a total of 158.00 from holding Mister Car Wash or generate 24.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Entertainment Technology vs. Mister Car Wash
Performance |
| Timeline |
| GD Entertainment Tec |
| Mister Car Wash |
GD Entertainment and Mister Car Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Entertainment and Mister Car
The main advantage of trading using opposite GD Entertainment and Mister Car positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Entertainment position performs unexpectedly, Mister Car 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 Mister Car will offset losses from the drop in Mister Car'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 |
| Mister Car vs. Bright Horizons Family | Mister Car vs. Smart Share Global | Mister Car vs. Carriage Services | Mister Car vs. Frontdoor |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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