Correlation Between Cloudflare and GAMECRED

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

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

Diversification Opportunities for Cloudflare and GAMECRED

0.0

Correlation Coefficient

Cloudflare  GAMECRED

Pay attention - limited upside

The 3 months correlation between Cloudflare and GAMECRED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cloudflare and GAMECRED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMECRED and Cloudflare 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 Cloudflare are associated (or correlated) with GAMECRED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMECRED has no effect on the direction of Cloudflare i.e., Cloudflare and GAMECRED go up and down completely randomly.

Pair Corralation between Cloudflare and GAMECRED

If you would invest  13,234  in Cloudflare on May 9, 2025 and sell it today you would earn a total of  7,810  from holding Cloudflare or generate 59.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cloudflare  vs.  GAMECRED

Cloudflare

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cloudflare are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Cloudflare unveiled solid returns over the last few months and may actually be approaching a breakup point.

GAMECRED

Risk-Adjusted Performance

Weakest

Over the last 90 days GAMECRED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, GAMECRED is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cloudflare and GAMECRED

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

The idea behind Cloudflare and GAMECRED 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.