Correlation Between Global Mofy and GDS Holdings

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

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

Diversification Opportunities for Global Mofy and GDS Holdings

0.08

Correlation Coefficient

Global Mofy  GDS Holdings

Significant diversification

The 3 months correlation between Global and GDS is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Mofy Metaverse and GDS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDS Holdings and Global Mofy 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 Global Mofy Metaverse are associated (or correlated) with GDS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDS Holdings has no effect on the direction of Global Mofy i.e., Global Mofy and GDS Holdings go up and down completely randomly.

Pair Corralation between Global Mofy and GDS Holdings

Considering the 90-day investment horizon Global Mofy is expected to generate 2.34 times less return on investment than GDS Holdings. But when comparing it to its historical volatility, Global Mofy Metaverse is 1.12 times less risky than GDS Holdings. It trades about 0.05 of its potential returns per unit of risk. GDS Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,779  in GDS Holdings on May 5, 2025 and sell it today you would earn a total of  633.00  from holding GDS Holdings or generate 22.78% return on investment over 90 days.

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

Global Mofy Metaverse  vs.  GDS Holdings

Global Mofy Metaverse

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Mofy Metaverse are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Global Mofy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

GDS Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GDS Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, GDS Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global Mofy and GDS Holdings

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

The idea behind Global Mofy Metaverse and GDS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.