Correlation Between GCL Global and Take Two
Can any of the company-specific risk be diversified away by investing in both GCL Global and Take Two 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 GCL Global and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCL Global Holdings and Take Two Interactive Software, you can compare the effects of market volatilities on GCL Global and Take Two 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 GCL Global with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCL Global and Take Two.
Diversification Opportunities for GCL Global and Take Two
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GCL and Take is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GCL Global Holdings and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and GCL Global 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 GCL Global Holdings are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of GCL Global i.e., GCL Global and Take Two go up and down completely randomly.
Pair Corralation between GCL Global and Take Two
Considering the 90-day investment horizon GCL Global Holdings is expected to generate 2.24 times more return on investment than Take Two. However, GCL Global is 2.24 times more volatile than Take Two Interactive Software. It trades about 0.06 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.09 per unit of risk. If you would invest 216.00 in GCL Global Holdings on March 21, 2025 and sell it today you would earn a total of 24.00 from holding GCL Global Holdings or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
GCL Global Holdings vs. Take Two Interactive Software
Performance |
| Timeline |
| GCL Global Holdings |
| Take Two Interactive |
GCL Global and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCL Global and Take Two
The main advantage of trading using opposite GCL Global and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCL Global position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| GCL Global vs. Emerson Electric | GCL Global vs. CECO Environmental Corp | GCL Global vs. Kaiser Aluminum | GCL Global vs. Gfl Environmental Holdings |
| Take Two vs. Nintendo Co ADR | Take Two vs. NetEase | Take Two vs. Playtika Holding Corp | Take Two vs. Electronic Arts |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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