Correlation Between Pudgy Penguins and Gatechain Token

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

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

Diversification Opportunities for Pudgy Penguins and Gatechain Token

0.79

Correlation Coefficient

Pudgy Penguins  Gatechain Token

Poor diversification

The 3 months correlation between Pudgy and Gatechain is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pudgy Penguins and Gatechain Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatechain Token and Pudgy Penguins 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 Pudgy Penguins are associated (or correlated) with Gatechain Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatechain Token has no effect on the direction of Pudgy Penguins i.e., Pudgy Penguins and Gatechain Token go up and down completely randomly.

Pair Corralation between Pudgy Penguins and Gatechain Token

Assuming the 90 days trading horizon Pudgy Penguins is expected to under-perform the Gatechain Token. In addition to that, Pudgy Penguins is 3.18 times more volatile than Gatechain Token. It trades about -0.3 of its total potential returns per unit of risk. Gatechain Token is currently generating about -0.48 per unit of volatility. If you would invest  1,661  in Gatechain Token on August 5, 2025 and sell it today you would lose (347.00) from holding Gatechain Token or give up 20.89% of portfolio value over 90 days.

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

Pudgy Penguins  vs.  Gatechain Token

Pudgy Penguins

Risk-Adjusted Performance

Weakest

Over the last 90 days Pudgy Penguins has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for Pudgy Penguins shareholders.

Gatechain Token

Risk-Adjusted Performance

Weakest

Over the last 90 days Gatechain Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for Gatechain Token shareholders.

Pair Trading with Pudgy Penguins and Gatechain Token

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

The idea behind Pudgy Penguins and Gatechain Token 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.