Correlation Between GDEV and GCL Global

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

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

Diversification Opportunities for GDEV and GCL Global

-0.18

Correlation Coefficient

GDEV  GCL Global

Good diversification

The 3 months correlation between GDEV and GCL is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GDEV Inc and GCL Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCL Global Holdings and GDEV 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 GDEV Inc are associated (or correlated) with GCL Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCL Global Holdings has no effect on the direction of GDEV i.e., GDEV and GCL Global go up and down completely randomly.

Pair Corralation between GDEV and GCL Global

Given the investment horizon of 90 days GDEV is expected to generate 4.16 times less return on investment than GCL Global. But when comparing it to its historical volatility, GDEV Inc is 3.04 times less risky than GCL Global. It trades about 0.09 of its potential returns per unit of risk. GCL Global Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  7.95  in GCL Global Holdings on May 2, 2025 and sell it today you would earn a total of  3.05  from holding GCL Global Holdings or generate 38.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	72.58%
Values	Daily Returns

GDEV Inc  vs.  GCL Global Holdings

GDEV Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GDEV Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, GDEV showed solid returns over the last few months and may actually be approaching a breakup point.

GCL Global Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GCL Global Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, GCL Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GDEV and GCL Global

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

The idea behind GDEV Inc and GCL Global Holdings 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.