Correlation Between GigaCloud Technology and Ryvyl

Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and Ryvyl 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 Ryvyl 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 Ryvyl Inc, you can compare the effects of market volatilities on GigaCloud Technology and Ryvyl 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 Ryvyl. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Ryvyl.

Diversification Opportunities for GigaCloud Technology and Ryvyl

0.63

Correlation Coefficient

GigaCloud Technology  Ryvyl

Poor diversification

The 3 months correlation between GigaCloud and Ryvyl is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Ryvyl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryvyl Inc 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 Ryvyl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryvyl Inc has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and Ryvyl go up and down completely randomly.

Pair Corralation between GigaCloud Technology and Ryvyl

Considering the 90-day investment horizon GigaCloud Technology is expected to generate 6.03 times less return on investment than Ryvyl. But when comparing it to its historical volatility, GigaCloud Technology Class is 1.98 times less risky than Ryvyl. It trades about 0.04 of its potential returns per unit of risk. Ryvyl Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  151.00  in Ryvyl Inc on August 30, 2024 and sell it today you would earn a total of  36.00  from holding Ryvyl Inc or generate 23.84% return on investment over 90 days.

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

GigaCloud Technology Class  vs.  Ryvyl Inc

GigaCloud Technology

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GigaCloud Technology Class are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, GigaCloud Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ryvyl Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ryvyl Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Ryvyl disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GigaCloud Technology and Ryvyl

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

The idea behind GigaCloud Technology Class and Ryvyl Inc 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 Global Correlations module to find global opportunities by holding instruments from different markets.