Correlation Between GD Culture and Clickstream Corp

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

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

Diversification Opportunities for GD Culture and Clickstream Corp

0.08

Correlation Coefficient

GD Culture  Clickstream Corp

Significant diversification

The 3 months correlation between GDC and Clickstream is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and Clickstream Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clickstream Corp and GD Culture 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 GD Culture Group are associated (or correlated) with Clickstream Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clickstream Corp has no effect on the direction of GD Culture i.e., GD Culture and Clickstream Corp go up and down completely randomly.

Pair Corralation between GD Culture and Clickstream Corp

Considering the 90-day investment horizon GD Culture is expected to generate 28.63 times less return on investment than Clickstream Corp. But when comparing it to its historical volatility, GD Culture Group is 19.73 times less risky than Clickstream Corp. It trades about 0.1 of its potential returns per unit of risk. Clickstream Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Clickstream Corp on December 28, 2024 and sell it today you would earn a total of  0.01  from holding Clickstream Corp or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	78.33%
Values	Daily Returns

GD Culture Group  vs.  Clickstream Corp

GD Culture Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GD Culture Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, GD Culture exhibited solid returns over the last few months and may actually be approaching a breakup point.

Clickstream Corp

Risk-Adjusted Performance

Good

Over the last 90 days Clickstream Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively unfluctuating forward indicators, Clickstream Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GD Culture and Clickstream Corp

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

The idea behind GD Culture Group and Clickstream Corp 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.