Correlation Between VARIOUS EATERIES and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES and GAMING FAC 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 VARIOUS EATERIES and GAMING FAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and GAMING FAC SA, you can compare the effects of market volatilities on VARIOUS EATERIES and GAMING FAC 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 VARIOUS EATERIES with a short position of GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and GAMING FAC.
Diversification Opportunities for VARIOUS EATERIES and GAMING FAC
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VARIOUS and GAMING is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA and VARIOUS EATERIES 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 VARIOUS EATERIES LS are associated (or correlated) with GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of VARIOUS EATERIES i.e., VARIOUS EATERIES and GAMING FAC go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and GAMING FAC
Assuming the 90 days horizon VARIOUS EATERIES is expected to generate 26.9 times less return on investment than GAMING FAC. But when comparing it to its historical volatility, VARIOUS EATERIES LS is 3.34 times less risky than GAMING FAC. It trades about 0.01 of its potential returns per unit of risk. GAMING FAC SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 165.00 in GAMING FAC SA on August 29, 2024 and sell it today you would earn a total of 6.00 from holding GAMING FAC SA or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. GAMING FAC SA
Performance |
| Timeline |
| VARIOUS EATERIES |
| GAMING FAC SA |
VARIOUS EATERIES and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and GAMING FAC
The main advantage of trading using opposite VARIOUS EATERIES and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.| VARIOUS EATERIES vs. STRAYER EDUCATION | VARIOUS EATERIES vs. GAMING FAC SA | VARIOUS EATERIES vs. GigaMedia | VARIOUS EATERIES vs. TAL Education Group |
| GAMING FAC vs. Sea Limited | GAMING FAC vs. Superior Plus Corp | GAMING FAC vs. NMI Holdings | GAMING FAC vs. SIVERS SEMICONDUCTORS AB |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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