Correlation Between GameStop Corp and Weidai
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Weidai 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 GameStop Corp and Weidai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Weidai, you can compare the effects of market volatilities on GameStop Corp and Weidai 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 GameStop Corp with a short position of Weidai. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Weidai.
Diversification Opportunities for GameStop Corp and Weidai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and Weidai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Weidai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weidai and GameStop Corp 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 GameStop Corp are associated (or correlated) with Weidai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weidai has no effect on the direction of GameStop Corp i.e., GameStop Corp and Weidai go up and down completely randomly.
Pair Corralation between GameStop Corp and Weidai
If you would invest 1,820 in GameStop Corp on September 14, 2024 and sell it today you would earn a total of 1,055 from holding GameStop Corp or generate 57.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GameStop Corp vs. Weidai
Performance |
| Timeline |
| GameStop Corp |
| Weidai |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GameStop Corp and Weidai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Weidai
The main advantage of trading using opposite GameStop Corp and Weidai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Weidai 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 Weidai will offset losses from the drop in Weidai's long position.| GameStop Corp vs. Arhaus Inc | GameStop Corp vs. Floor Decor Holdings | GameStop Corp vs. Live Ventures | GameStop Corp vs. Macys Inc |
| Weidai vs. Saia Inc | Weidai vs. East Africa Metals | Weidai vs. Verra Mobility Corp | Weidai vs. Ryanair Holdings PLC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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