Correlation Between Gaxosai and Doubledown Interactive

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

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

Diversification Opportunities for Gaxosai and Doubledown Interactive

-0.33

Correlation Coefficient

Gaxosai  Doubledown Interactive

Very good diversification

The 3 months correlation between Gaxosai and Doubledown is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gaxosai and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive and Gaxosai 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 Gaxosai are associated (or correlated) with Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Gaxosai i.e., Gaxosai and Doubledown Interactive go up and down completely randomly.

Pair Corralation between Gaxosai and Doubledown Interactive

Given the investment horizon of 90 days Gaxosai is expected to generate 5.62 times more return on investment than Doubledown Interactive. However, Gaxosai is 5.62 times more volatile than Doubledown Interactive Co. It trades about 0.11 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.18 per unit of risk. If you would invest  120.00  in Gaxosai on November 19, 2024 and sell it today you would earn a total of  59.00  from holding Gaxosai or generate 49.17% return on investment over 90 days.

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

Gaxosai  vs.  Doubledown Interactive Co

Gaxosai

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gaxosai are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Gaxosai demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Doubledown Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Gaxosai and Doubledown Interactive

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

The idea behind Gaxosai and Doubledown Interactive Co 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.