Correlation Between MondayCom and GDEV

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

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

Diversification Opportunities for MondayCom and GDEV

0.42

Correlation Coefficient

MondayCom  GDEV

Very weak diversification

The 3 months correlation between MondayCom and GDEV is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MondayCom and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc and MondayCom 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 MondayCom are associated (or correlated) with GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of MondayCom i.e., MondayCom and GDEV go up and down completely randomly.

Pair Corralation between MondayCom and GDEV

Given the investment horizon of 90 days MondayCom is expected to under-perform the GDEV. But the stock apears to be less risky and, when comparing its historical volatility, MondayCom is 2.19 times less risky than GDEV. The stock trades about -0.05 of its potential returns per unit of risk. The GDEV Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,664  in GDEV Inc on May 3, 2025 and sell it today you would lose (224.00) from holding GDEV Inc or give up 13.46% of portfolio value over 90 days.

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

MondayCom  vs.  GDEV Inc

MondayCom

Risk-Adjusted Performance

Very Weak

Over the last 90 days MondayCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

GDEV Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days GDEV Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with MondayCom and GDEV

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

The idea behind MondayCom and GDEV 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.