Correlation Between GigaCloud Technology and Yext

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

Diversification Opportunities for GigaCloud Technology and Yext

0.79

Correlation Coefficient

GigaCloud Technology  Yext

Poor diversification

The 3 months correlation between GigaCloud and Yext is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Yext Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yext Inc 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 Yext. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yext Inc has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and Yext go up and down completely randomly.

Pair Corralation between GigaCloud Technology and Yext

Considering the 90-day investment horizon GigaCloud Technology Class is expected to under-perform the Yext. In addition to that, GigaCloud Technology is 2.14 times more volatile than Yext Inc. It trades about -0.11 of its total potential returns per unit of risk. Yext Inc is currently generating about -0.08 per unit of volatility. If you would invest  640.00  in Yext Inc on January 18, 2025 and sell it today you would lose (29.00) from holding Yext Inc or give up 4.53% of portfolio value over 90 days.

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

GigaCloud Technology Class  vs.  Yext Inc

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 May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Yext Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yext Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Yext is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GigaCloud Technology and Yext

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

The idea behind GigaCloud Technology Class and Yext 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.