Correlation Between MOVIE GAMES and Gemfields Group
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and Gemfields Group 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 Gemfields Group 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 Gemfields Group Limited, you can compare the effects of market volatilities on MOVIE GAMES and Gemfields Group 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 Gemfields Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Gemfields Group.
Diversification Opportunities for MOVIE GAMES and Gemfields Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between MOVIE and Gemfields is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Gemfields Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group 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 Gemfields Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Gemfields Group go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Gemfields Group
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 0.66 times more return on investment than Gemfields Group. However, MOVIE GAMES SA is 1.52 times less risky than Gemfields Group. It trades about 0.19 of its potential returns per unit of risk. Gemfields Group Limited is currently generating about 0.0 per unit of risk. If you would invest 351.00 in MOVIE GAMES SA on November 7, 2024 and sell it today you would earn a total of 63.00 from holding MOVIE GAMES SA or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Gemfields Group Limited
Performance |
| Timeline |
| MOVIE GAMES SA |
| Gemfields Group |
MOVIE GAMES and Gemfields Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Gemfields Group
The main advantage of trading using opposite MOVIE GAMES and Gemfields Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, Gemfields Group 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 Gemfields Group will offset losses from the drop in Gemfields Group's long position.| MOVIE GAMES vs. PACIFIC ONLINE | MOVIE GAMES vs. Singapore Reinsurance | MOVIE GAMES vs. Zurich Insurance Group | MOVIE GAMES vs. Direct Line Insurance |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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