Correlation Between GAME HOURS and Avalue Technology
Can any of the company-specific risk be diversified away by investing in both GAME HOURS and Avalue Technology 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 GAME HOURS and Avalue Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAME HOURS and Avalue Technology, you can compare the effects of market volatilities on GAME HOURS and Avalue Technology 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 GAME HOURS with a short position of Avalue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAME HOURS and Avalue Technology.
Diversification Opportunities for GAME HOURS and Avalue Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAME and Avalue is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GAME HOURS and Avalue Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalue Technology and GAME HOURS 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 GAME HOURS are associated (or correlated) with Avalue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalue Technology has no effect on the direction of GAME HOURS i.e., GAME HOURS and Avalue Technology go up and down completely randomly.
Pair Corralation between GAME HOURS and Avalue Technology
Assuming the 90 days trading horizon GAME HOURS is expected to generate 5.56 times less return on investment than Avalue Technology. In addition to that, GAME HOURS is 1.03 times more volatile than Avalue Technology. It trades about 0.08 of its total potential returns per unit of risk. Avalue Technology is currently generating about 0.48 per unit of volatility. If you would invest 9,100 in Avalue Technology on November 28, 2024 and sell it today you would earn a total of 2,100 from holding Avalue Technology or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAME HOURS vs. Avalue Technology
Performance |
| Timeline |
| GAME HOURS |
| Avalue Technology |
GAME HOURS and Avalue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAME HOURS and Avalue Technology
The main advantage of trading using opposite GAME HOURS and Avalue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAME HOURS position performs unexpectedly, Avalue Technology 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 Avalue Technology will offset losses from the drop in Avalue Technology's long position.| GAME HOURS vs. International Games System | GAME HOURS vs. Gamania Digital Entertainment | GAME HOURS vs. Soft World International | GAME HOURS vs. Softstar Entertainment |
| Avalue Technology vs. Ligitek Electronics Co | Avalue Technology vs. Maxigen Biotech | Avalue Technology vs. Taiwan Chinsan Electronic | Avalue Technology vs. Everlight Electronics 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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