Correlation Between 3R Games and Grupa HRC
Can any of the company-specific risk be diversified away by investing in both 3R Games and Grupa HRC 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 3R Games and Grupa HRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3R Games SA and Grupa HRC SA, you can compare the effects of market volatilities on 3R Games and Grupa HRC 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 3R Games with a short position of Grupa HRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3R Games and Grupa HRC.
Diversification Opportunities for 3R Games and Grupa HRC
Good diversification
The 3 months correlation between 3RG and Grupa is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding 3R Games SA and Grupa HRC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa HRC SA and 3R 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 3R Games SA are associated (or correlated) with Grupa HRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa HRC SA has no effect on the direction of 3R Games i.e., 3R Games and Grupa HRC go up and down completely randomly.
Pair Corralation between 3R Games and Grupa HRC
Assuming the 90 days trading horizon 3R Games SA is expected to generate 1.74 times more return on investment than Grupa HRC. However, 3R Games is 1.74 times more volatile than Grupa HRC SA. It trades about 0.21 of its potential returns per unit of risk. Grupa HRC SA is currently generating about -0.33 per unit of risk. If you would invest 28.00 in 3R Games SA on September 12, 2024 and sell it today you would earn a total of 10.00 from holding 3R Games SA or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
3R Games SA vs. Grupa HRC SA
Performance |
| Timeline |
| 3R Games SA |
| Grupa HRC SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
3R Games and Grupa HRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3R Games and Grupa HRC
The main advantage of trading using opposite 3R Games and Grupa HRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3R Games position performs unexpectedly, Grupa HRC 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 Grupa HRC will offset losses from the drop in Grupa HRC's long position.| 3R Games vs. Allegroeu SA | 3R Games vs. Asseco Business Solutions | 3R Games vs. Detalion Games SA | 3R Games vs. Asseco South Eastern |
| Grupa HRC vs. Quantum Software SA | Grupa HRC vs. PMPG Polskie Media | Grupa HRC vs. Centrum Finansowe Banku | Grupa HRC vs. SOFTWARE MANSION SPOLKA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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