Correlation Between GD Culture and Mobile Global

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

Diversification Opportunities for GD Culture and Mobile Global

0.0

Correlation Coefficient

GD Culture  Mobile Global

Pay attention - limited upside

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

Pair Corralation between GD Culture and Mobile Global

If you would invest  203.00  in GD Culture Group on December 27, 2024 and sell it today you would earn a total of  55.00  from holding GD Culture Group or generate 27.09% return on investment over 90 days.

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

GD Culture Group  vs.  Mobile Global Esports

GD Culture Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GD Culture Group are ranked lower than 6 (%) 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.

Mobile Global Esports

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobile Global Esports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Mobile Global is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with GD Culture and Mobile Global

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

The idea behind GD Culture Group and Mobile Global Esports 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.