Correlation Between Gigastorage Corp and Gold Rain

Can any of the company-specific risk be diversified away by investing in both Gigastorage Corp and Gold Rain 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 Gigastorage Corp and Gold Rain into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gigastorage Corp and Gold Rain Enterprises, you can compare the effects of market volatilities on Gigastorage Corp and Gold Rain 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 Gigastorage Corp with a short position of Gold Rain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigastorage Corp and Gold Rain.

Diversification Opportunities for Gigastorage Corp and Gold Rain

0.0

Correlation Coefficient

Gigastorage Corp  Gold Rain

Pay attention - limited upside

The 3 months correlation between Gigastorage and Gold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gigastorage Corp and Gold Rain Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Rain Enterprises and Gigastorage 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 Gigastorage Corp are associated (or correlated) with Gold Rain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Rain Enterprises has no effect on the direction of Gigastorage Corp i.e., Gigastorage Corp and Gold Rain go up and down completely randomly.

Pair Corralation between Gigastorage Corp and Gold Rain

If you would invest (100.00) in Gold Rain Enterprises on October 23, 2024 and sell it today you would earn a total of  100.00  from holding Gold Rain Enterprises or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gigastorage Corp  vs.  Gold Rain Enterprises

Gigastorage Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gigastorage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Gold Rain Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gold Rain Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Gold Rain is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Gigastorage Corp and Gold Rain

The main advantage of trading using opposite Gigastorage Corp and Gold Rain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigastorage Corp position performs unexpectedly, Gold Rain 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 Gold Rain will offset losses from the drop in Gold Rain's long position.

The idea behind Gigastorage Corp and Gold Rain Enterprises pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.