Correlation Between TROPHY GAMES and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and GAMESTOP 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 TROPHY GAMES and GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and GAMESTOP, you can compare the effects of market volatilities on TROPHY GAMES and GAMESTOP 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 TROPHY GAMES with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and GAMESTOP.
Diversification Opportunities for TROPHY GAMES and GAMESTOP
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TROPHY and GAMESTOP is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and TROPHY 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 TROPHY GAMES DEV are associated (or correlated) with GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and GAMESTOP go up and down completely randomly.
Pair Corralation between TROPHY GAMES and GAMESTOP
Assuming the 90 days horizon TROPHY GAMES is expected to generate 2.71 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, TROPHY GAMES DEV is 2.74 times less risky than GAMESTOP. It trades about 0.07 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,200 in GAMESTOP on August 25, 2024 and sell it today you would earn a total of 1,435 from holding GAMESTOP or generate 119.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. GAMESTOP
Performance |
| Timeline |
| TROPHY GAMES DEV |
| GAMESTOP |
TROPHY GAMES and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and GAMESTOP
The main advantage of trading using opposite TROPHY GAMES and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Bilibili |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |