Correlation Between PDD Holdings and Gogoro
Can any of the company-specific risk be diversified away by investing in both PDD Holdings and Gogoro 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 PDD Holdings and Gogoro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Gogoro Inc, you can compare the effects of market volatilities on PDD Holdings and Gogoro 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 PDD Holdings with a short position of Gogoro. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Gogoro.
Diversification Opportunities for PDD Holdings and Gogoro
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PDD and Gogoro is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings and Gogoro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Inc and PDD 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 PDD Holdings are associated (or correlated) with Gogoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Inc has no effect on the direction of PDD Holdings i.e., PDD Holdings and Gogoro go up and down completely randomly.
Pair Corralation between PDD Holdings and Gogoro
Considering the 90-day investment horizon PDD Holdings is expected to under-perform the Gogoro. But the stock apears to be less risky and, when comparing its historical volatility, PDD Holdings is 1.86 times less risky than Gogoro. The stock trades about -0.32 of its potential returns per unit of risk. The Gogoro Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Gogoro Inc on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Gogoro Inc or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PDD Holdings vs. Gogoro Inc
Performance |
| Timeline |
| PDD Holdings |
| Gogoro Inc |
PDD Holdings and Gogoro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDD Holdings and Gogoro
The main advantage of trading using opposite PDD Holdings and Gogoro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings position performs unexpectedly, Gogoro 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 Gogoro will offset losses from the drop in Gogoro's long position.| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
| Gogoro vs. Motorcar Parts of | Gogoro vs. Stoneridge | Gogoro vs. Superior Industries International | Gogoro vs. Lear Corporation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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