Correlation Between GigaCloud Technology and Paysign

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

By analyzing existing cross correlation between GigaCloud Technology Class and Paysign, you can compare the effects of market volatilities on GigaCloud Technology and Paysign 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 GigaCloud Technology with a short position of Paysign. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Paysign.

Diversification Opportunities for GigaCloud Technology and Paysign

0.56

Correlation Coefficient

GigaCloud Technology  Paysign

Very weak diversification

The 3 months correlation between GigaCloud and Paysign is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Paysign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysign and GigaCloud Technology 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 GigaCloud Technology Class are associated (or correlated) with Paysign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysign has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and Paysign go up and down completely randomly.

Pair Corralation between GigaCloud Technology and Paysign

Considering the 90-day investment horizon GigaCloud Technology Class is expected to under-perform the Paysign. But the stock apears to be less risky and, when comparing its historical volatility, GigaCloud Technology Class is 1.01 times less risky than Paysign. The stock trades about -0.12 of its potential returns per unit of risk. The Paysign is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  340.00  in Paysign on December 2, 2024 and sell it today you would lose (75.00) from holding Paysign or give up 22.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

GigaCloud Technology Class  vs.  Paysign

GigaCloud Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days GigaCloud Technology Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Paysign

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paysign has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with GigaCloud Technology and Paysign

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

The idea behind GigaCloud Technology Class and Paysign 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.