Correlation Between GigaCloud Technology and MicroAlgo

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

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

Diversification Opportunities for GigaCloud Technology and MicroAlgo

-0.65

Correlation Coefficient

GigaCloud Technology  MicroAlgo

Excellent diversification

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

Pair Corralation between GigaCloud Technology and MicroAlgo

Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 0.28 times more return on investment than MicroAlgo. However, GigaCloud Technology Class is 3.59 times less risky than MicroAlgo. It trades about 0.25 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.28 per unit of risk. If you would invest  1,364  in GigaCloud Technology Class on May 2, 2025 and sell it today you would earn a total of  901.00  from holding GigaCloud Technology Class or generate 66.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

GigaCloud Technology Class  vs.  MicroAlgo

GigaCloud Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GigaCloud Technology Class are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, GigaCloud Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

MicroAlgo

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with GigaCloud Technology and MicroAlgo

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

The idea behind GigaCloud Technology Class and MicroAlgo 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.