Correlation Between MOVIE GAMES and Boyaa Interactive
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and Boyaa Interactive 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 MOVIE GAMES and Boyaa Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Boyaa Interactive International, you can compare the effects of market volatilities on MOVIE GAMES and Boyaa Interactive 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 MOVIE GAMES with a short position of Boyaa Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Boyaa Interactive.
Diversification Opportunities for MOVIE GAMES and Boyaa Interactive
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOVIE and Boyaa is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Boyaa Interactive Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyaa Interactive and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with Boyaa Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyaa Interactive has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Boyaa Interactive go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Boyaa Interactive
Assuming the 90 days horizon MOVIE GAMES SA is expected to under-perform the Boyaa Interactive. But the stock apears to be less risky and, when comparing its historical volatility, MOVIE GAMES SA is 2.63 times less risky than Boyaa Interactive. The stock trades about -0.06 of its potential returns per unit of risk. The Boyaa Interactive International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5.09 in Boyaa Interactive International on September 14, 2024 and sell it today you would earn a total of 57.91 from holding Boyaa Interactive International or generate 1137.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Boyaa Interactive Internationa
Performance |
| Timeline |
| MOVIE GAMES SA |
| Boyaa Interactive |
MOVIE GAMES and Boyaa Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Boyaa Interactive
The main advantage of trading using opposite MOVIE GAMES and Boyaa Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, Boyaa Interactive 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 Boyaa Interactive will offset losses from the drop in Boyaa Interactive's long position.| MOVIE GAMES vs. National Storage Affiliates | MOVIE GAMES vs. Datang International Power | MOVIE GAMES vs. Verizon Communications | MOVIE GAMES vs. Charter Communications |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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