Correlation Between GCL Global and GDEV

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

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

Diversification Opportunities for GCL Global and GDEV

-0.48

Correlation Coefficient

GCL Global  GDEV

Very good diversification

The 3 months correlation between GCL and GDEV is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding GCL Global Holdings and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc and GCL Global 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 GCL Global Holdings are associated (or correlated) with GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of GCL Global i.e., GCL Global and GDEV go up and down completely randomly.

Pair Corralation between GCL Global and GDEV

Considering the 90-day investment horizon GCL Global Holdings is expected to generate 0.99 times more return on investment than GDEV. However, GCL Global Holdings is 1.01 times less risky than GDEV. It trades about 0.13 of its potential returns per unit of risk. GDEV Inc is currently generating about 0.01 per unit of risk. If you would invest  222.00  in GCL Global Holdings on May 16, 2025 and sell it today you would earn a total of  93.00  from holding GCL Global Holdings or generate 41.89% return on investment over 90 days.

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

GCL Global Holdings  vs.  GDEV Inc

GCL Global Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in GCL Global Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, GCL Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

GDEV Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GDEV Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable technical and fundamental indicators, GDEV is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with GCL Global and GDEV

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

The idea behind GCL Global Holdings and GDEV Inc 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.