Correlation Between Giga Media and Gaxosai
Can any of the company-specific risk be diversified away by investing in both Giga Media and Gaxosai 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 Giga Media and Gaxosai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Media and Gaxosai, you can compare the effects of market volatilities on Giga Media and Gaxosai 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 Giga Media with a short position of Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Media and Gaxosai.
Diversification Opportunities for Giga Media and Gaxosai
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Giga and Gaxosai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Giga Media and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai and Giga Media 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 Giga Media are associated (or correlated) with Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Giga Media i.e., Giga Media and Gaxosai go up and down completely randomly.
Pair Corralation between Giga Media and Gaxosai
Given the investment horizon of 90 days Giga Media is expected to generate 3.21 times less return on investment than Gaxosai. But when comparing it to its historical volatility, Giga Media is 7.44 times less risky than Gaxosai. It trades about 0.02 of its potential returns per unit of risk. Gaxosai is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,544 in Gaxosai on November 19, 2024 and sell it today you would lose (2,365) from holding Gaxosai or give up 92.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Giga Media vs. Gaxosai
Performance |
Timeline |
Giga Media |
Gaxosai |
Giga Media and Gaxosai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Giga Media and Gaxosai
The main advantage of trading using opposite Giga Media and Gaxosai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Media position performs unexpectedly, Gaxosai 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 Gaxosai will offset losses from the drop in Gaxosai's long position.Giga Media vs. SohuCom | Giga Media vs. Snail, Class A | Giga Media vs. Playstudios | Giga Media vs. Playtika Holding Corp |
Gaxosai vs. CDW Corp | Gaxosai vs. IAC Inc | Gaxosai vs. Cedar Realty Trust | Gaxosai vs. Albertsons Companies |
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 Stocks Directory module to find actively traded stocks across global markets.
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