Correlation Between GD Culture and Snail,

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

Diversification Opportunities for GD Culture and Snail,

-0.65

Correlation Coefficient

GD Culture  Snail,

Excellent diversification

The 3 months correlation between GDC and Snail, is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and Snail, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snail, Class A 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 Snail,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snail, Class A has no effect on the direction of GD Culture i.e., GD Culture and Snail, go up and down completely randomly.

Pair Corralation between GD Culture and Snail,

Considering the 90-day investment horizon GD Culture Group is expected to under-perform the Snail,. But the stock apears to be less risky and, when comparing its historical volatility, GD Culture Group is 1.36 times less risky than Snail,. The stock trades about -0.14 of its potential returns per unit of risk. The Snail, Class A is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  87.00  in Snail, Class A on September 4, 2024 and sell it today you would earn a total of  33.00  from holding Snail, Class A or generate 37.93% return on investment over 90 days.

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

GD Culture Group  vs.  Snail, Class A

GD Culture Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GD Culture Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Snail, Class A

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Snail, Class A are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Snail, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GD Culture and Snail,

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

The idea behind GD Culture Group and Snail, Class A 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.