Correlation Between GCL Global and Perfect Corp

Can any of the company-specific risk be diversified away by investing in both GCL Global and Perfect Corp 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 Perfect Corp 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 Perfect Corp, you can compare the effects of market volatilities on GCL Global and Perfect Corp 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 Perfect Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCL Global and Perfect Corp.

Diversification Opportunities for GCL Global and Perfect Corp

0.53

Correlation Coefficient

GCL Global  Perfect Corp

Very weak diversification

The 3 months correlation between GCL and Perfect is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding GCL Global Holdings and Perfect Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perfect Corp 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 Perfect Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perfect Corp has no effect on the direction of GCL Global i.e., GCL Global and Perfect Corp go up and down completely randomly.

Pair Corralation between GCL Global and Perfect Corp

Considering the 90-day investment horizon GCL Global Holdings is expected to under-perform the Perfect Corp. In addition to that, GCL Global is 1.69 times more volatile than Perfect Corp. It trades about -0.24 of its total potential returns per unit of risk. Perfect Corp is currently generating about -0.06 per unit of volatility. If you would invest  203.00  in Perfect Corp on August 26, 2025 and sell it today you would lose (32.00) from holding Perfect Corp or give up 15.76% of portfolio value over 90 days.

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

GCL Global Holdings  vs.  Perfect Corp

GCL Global Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days GCL Global Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Perfect Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Perfect Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with GCL Global and Perfect Corp

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

The idea behind GCL Global Holdings and Perfect Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.