Correlation Between CITY OFFICE and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE 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 CITY OFFICE and GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and GAMESTOP, you can compare the effects of market volatilities on CITY OFFICE 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 CITY OFFICE with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and GAMESTOP.
Diversification Opportunities for CITY OFFICE and GAMESTOP
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITY and GAMESTOP is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and CITY OFFICE 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 CITY OFFICE REIT 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 CITY OFFICE i.e., CITY OFFICE and GAMESTOP go up and down completely randomly.
Pair Corralation between CITY OFFICE and GAMESTOP
Assuming the 90 days horizon CITY OFFICE is expected to generate 1.86 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, CITY OFFICE REIT is 1.06 times less risky than GAMESTOP. It trades about 0.24 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2,119 in GAMESTOP on August 31, 2024 and sell it today you would earn a total of 818.00 from holding GAMESTOP or generate 38.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. GAMESTOP
Performance |
| Timeline |
| CITY OFFICE REIT |
| GAMESTOP |
CITY OFFICE and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and GAMESTOP
The main advantage of trading using opposite CITY OFFICE and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE 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.| CITY OFFICE vs. Columbia Sportswear | CITY OFFICE vs. INTERSHOP Communications Aktiengesellschaft | CITY OFFICE vs. Charter Communications | CITY OFFICE vs. KOOL2PLAY SA ZY |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |