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

-0.43

Correlation Coefficient

GD Culture  Clickstream Corp

Very good diversification

The 3 months correlation between GDC and Clickstream is -0.43. 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

If you would invest  291.00  in GD Culture Group on December 4, 2024 and sell it today you would lose (99.00) from holding GD Culture Group or give up 34.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

GD Culture Group  vs.  Clickstream Corp

GD Culture Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days GD Culture Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, GD Culture is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Clickstream Corp

Risk-Adjusted Performance

OK

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 weak 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.