Correlation Between Remark Holdings and GigaCloud Technology
Can any of the company-specific risk be diversified away by investing in both Remark Holdings and GigaCloud Technology 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 Remark Holdings and GigaCloud Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remark Holdings and GigaCloud Technology Class, you can compare the effects of market volatilities on Remark Holdings and GigaCloud Technology 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 Remark Holdings with a short position of GigaCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remark Holdings and GigaCloud Technology.
Diversification Opportunities for Remark Holdings and GigaCloud Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Remark and GigaCloud is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Remark Holdings and GigaCloud Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaCloud Technology and Remark Holdings 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 Remark Holdings are associated (or correlated) with GigaCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaCloud Technology has no effect on the direction of Remark Holdings i.e., Remark Holdings and GigaCloud Technology go up and down completely randomly.
Pair Corralation between Remark Holdings and GigaCloud Technology
If you would invest 2,277 in GigaCloud Technology Class on September 1, 2024 and sell it today you would earn a total of 193.00 from holding GigaCloud Technology Class or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Remark Holdings vs. GigaCloud Technology Class
Performance |
| Timeline |
| Remark Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GigaCloud Technology |
Remark Holdings and GigaCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remark Holdings and GigaCloud Technology
The main advantage of trading using opposite Remark Holdings and GigaCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remark Holdings position performs unexpectedly, GigaCloud Technology 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 GigaCloud Technology will offset losses from the drop in GigaCloud Technology's long position.| Remark Holdings vs. Yext Inc | Remark Holdings vs. Bandwidth | Remark Holdings vs. Pagaya Technologies | Remark Holdings vs. Arqit Quantum |
| GigaCloud Technology vs. Steven Madden | GigaCloud Technology vs. Vera Bradley | GigaCloud Technology vs. Caleres | GigaCloud Technology vs. Wolverine World Wide |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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