Correlation Between Remark Holdings and GigaCloud Technology

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

By analyzing existing cross correlation between Remark Holdings and GigaCloud Technology Class, you can compare the effects of market volatilities on Remark Holdings and GigaCloud Technology 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 Remark Holdings with a short position of GigaCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remark Holdings and GigaCloud Technology.

Diversification Opportunities for Remark Holdings and GigaCloud Technology

0.0

Correlation Coefficient

Remark Holdings  GigaCloud Technology

Pay attention - limited upside

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

Pair Corralation between Remark Holdings and GigaCloud Technology

If you would invest (100.00) in Remark Holdings on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Remark Holdings or generate -100.0% return on investment over 90 days.

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

Remark Holdings  vs.  GigaCloud Technology Class

Remark Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Remark Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Remark Holdings is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

GigaCloud Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days GigaCloud Technology Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Remark Holdings and GigaCloud Technology

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

The idea behind Remark Holdings and GigaCloud Technology Class 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.