Correlation Between GDEV and I3 Interactive

Can any of the company-specific risk be diversified away by investing in both GDEV and I3 Interactive 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 GDEV and I3 Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GDEV Inc and i3 Interactive, you can compare the effects of market volatilities on GDEV and I3 Interactive 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 GDEV with a short position of I3 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDEV and I3 Interactive.

Diversification Opportunities for GDEV and I3 Interactive

0.0

Correlation Coefficient

GDEV  I3 Interactive

Pay attention - limited upside

The 3 months correlation between GDEV and BLITF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GDEV Inc and i3 Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Interactive and GDEV 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 GDEV Inc are associated (or correlated) with I3 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Interactive has no effect on the direction of GDEV i.e., GDEV and I3 Interactive go up and down completely randomly.

Pair Corralation between GDEV and I3 Interactive

If you would invest  1,930  in GDEV Inc on December 2, 2024 and sell it today you would earn a total of  28.00  from holding GDEV Inc or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GDEV Inc  vs.  i3 Interactive

GDEV Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days GDEV Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, GDEV is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

i3 Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days i3 Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, I3 Interactive is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GDEV and I3 Interactive

The main advantage of trading using opposite GDEV and I3 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDEV position performs unexpectedly, I3 Interactive 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 I3 Interactive will offset losses from the drop in I3 Interactive's long position.

The idea behind GDEV Inc and i3 Interactive 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.