Correlation Between Victory Square and GD Culture
Can any of the company-specific risk be diversified away by investing in both Victory Square and GD Culture 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 Victory Square and GD Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Square Technologies and GD Culture Group, you can compare the effects of market volatilities on Victory Square and GD Culture 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 Victory Square with a short position of GD Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Square and GD Culture.
Diversification Opportunities for Victory Square and GD Culture
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victory and GDC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Victory Square Technologies and GD Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Culture Group and Victory Square 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 Victory Square Technologies are associated (or correlated) with GD Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Culture Group has no effect on the direction of Victory Square i.e., Victory Square and GD Culture go up and down completely randomly.
Pair Corralation between Victory Square and GD Culture
Assuming the 90 days horizon Victory Square Technologies is expected to generate 0.52 times more return on investment than GD Culture. However, Victory Square Technologies is 1.92 times less risky than GD Culture. It trades about 0.08 of its potential returns per unit of risk. GD Culture Group is currently generating about -0.09 per unit of risk. If you would invest 6.90 in Victory Square Technologies on August 28, 2024 and sell it today you would earn a total of 1.38 from holding Victory Square Technologies or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Square Technologies vs. GD Culture Group
Performance |
| Timeline |
| Victory Square Techn |
| GD Culture Group |
Victory Square and GD Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Square and GD Culture
The main advantage of trading using opposite Victory Square and GD Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Square position performs unexpectedly, GD Culture 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 GD Culture will offset losses from the drop in GD Culture's long position.| Victory Square vs. GDEV Inc | Victory Square vs. Doubledown Interactive Co | Victory Square vs. Playstudios | Victory Square vs. SohuCom |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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