Correlation Between GDEV and Shoals Technologies

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

By analyzing existing cross correlation between GDEV Inc and Shoals Technologies Group, you can compare the effects of market volatilities on GDEV and Shoals Technologies 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 Shoals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDEV and Shoals Technologies.

Diversification Opportunities for GDEV and Shoals Technologies

0.03

Correlation Coefficient

GDEV  Shoals Technologies

Significant diversification

The 3 months correlation between GDEV and Shoals is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GDEV Inc and Shoals Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoals Technologies 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 Shoals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoals Technologies has no effect on the direction of GDEV i.e., GDEV and Shoals Technologies go up and down completely randomly.

Pair Corralation between GDEV and Shoals Technologies

Given the investment horizon of 90 days GDEV Inc is expected to under-perform the Shoals Technologies. In addition to that, GDEV is 1.02 times more volatile than Shoals Technologies Group. It trades about -0.01 of its total potential returns per unit of risk. Shoals Technologies Group is currently generating about 0.02 per unit of volatility. If you would invest  472.00  in Shoals Technologies Group on May 17, 2025 and sell it today you would lose (13.00) from holding Shoals Technologies Group or give up 2.75% of portfolio value over 90 days.

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

GDEV Inc  vs.  Shoals Technologies Group

GDEV Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days GDEV Inc has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Shoals Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Shoals Technologies Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Shoals Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GDEV and Shoals Technologies

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

The idea behind GDEV Inc and Shoals Technologies Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.