Correlation Between Gamania Digital and International Games
Can any of the company-specific risk be diversified away by investing in both Gamania Digital and International Games 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 Gamania Digital and International Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamania Digital Entertainment and International Games System, you can compare the effects of market volatilities on Gamania Digital and International Games 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 Gamania Digital with a short position of International Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamania Digital and International Games.
Diversification Opportunities for Gamania Digital and International Games
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gamania and International is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gamania Digital Entertainment and International Games System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Games and Gamania Digital 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 Gamania Digital Entertainment are associated (or correlated) with International Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Games has no effect on the direction of Gamania Digital i.e., Gamania Digital and International Games go up and down completely randomly.
Pair Corralation between Gamania Digital and International Games
Assuming the 90 days trading horizon Gamania Digital is expected to generate 90.55 times less return on investment than International Games. But when comparing it to its historical volatility, Gamania Digital Entertainment is 48.69 times less risky than International Games. It trades about 0.04 of its potential returns per unit of risk. International Games System is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 28,464 in International Games System on August 31, 2024 and sell it today you would earn a total of 67,536 from holding International Games System or generate 237.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamania Digital Entertainment vs. International Games System
Performance |
| Timeline |
| Gamania Digital Ente |
| International Games |
Gamania Digital and International Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamania Digital and International Games
The main advantage of trading using opposite Gamania Digital and International Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamania Digital position performs unexpectedly, International Games 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 International Games will offset losses from the drop in International Games' long position.| Gamania Digital vs. Soft World International | Gamania Digital vs. International Games System | Gamania Digital vs. Softstar Entertainment | Gamania Digital vs. Chinese Gamer International |
| International Games vs. Gamania Digital Entertainment | International Games vs. Soft World International | International Games vs. Softstar Entertainment | International Games vs. X Legend Entertainment Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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