Correlation Between Giga Media and GDEV
Can any of the company-specific risk be diversified away by investing in both Giga Media and GDEV 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 Giga Media and GDEV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Media and GDEV Inc, you can compare the effects of market volatilities on Giga Media and GDEV 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 Giga Media with a short position of GDEV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Media and GDEV.
Diversification Opportunities for Giga Media and GDEV
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Giga and GDEV is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Giga Media and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc and Giga Media 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 Giga Media are associated (or correlated) with GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of Giga Media i.e., Giga Media and GDEV go up and down completely randomly.
Pair Corralation between Giga Media and GDEV
Given the investment horizon of 90 days Giga Media is expected to generate 0.2 times more return on investment than GDEV. However, Giga Media is 4.88 times less risky than GDEV. It trades about 0.16 of its potential returns per unit of risk. GDEV Inc is currently generating about -0.31 per unit of risk. If you would invest 139.00 in Giga Media on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Giga Media or generate 4.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Giga Media vs. GDEV Inc
Performance |
| Timeline |
| Giga Media |
| GDEV Inc |
Giga Media and GDEV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Media and GDEV
The main advantage of trading using opposite Giga Media and GDEV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Media position performs unexpectedly, GDEV 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 GDEV will offset losses from the drop in GDEV's long position.| Giga Media vs. Playstudios | Giga Media vs. Talkspace | Giga Media vs. Katapult Holdings Equity | Giga Media vs. Aquagold International |
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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