Correlation Between GAME HOURS and Genovate Biotechnology
Can any of the company-specific risk be diversified away by investing in both GAME HOURS and Genovate Biotechnology 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 Genovate Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAME HOURS and Genovate Biotechnology Co, you can compare the effects of market volatilities on GAME HOURS and Genovate Biotechnology 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 Genovate Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAME HOURS and Genovate Biotechnology.
Diversification Opportunities for GAME HOURS and Genovate Biotechnology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAME and Genovate is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GAME HOURS and Genovate Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovate Biotechnology 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 Genovate Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovate Biotechnology has no effect on the direction of GAME HOURS i.e., GAME HOURS and Genovate Biotechnology go up and down completely randomly.
Pair Corralation between GAME HOURS and Genovate Biotechnology
Assuming the 90 days trading horizon GAME HOURS is expected to generate 5.98 times more return on investment than Genovate Biotechnology. However, GAME HOURS is 5.98 times more volatile than Genovate Biotechnology Co. It trades about -0.03 of its potential returns per unit of risk. Genovate Biotechnology Co is currently generating about -0.21 per unit of risk. If you would invest 715.00 in GAME HOURS on September 2, 2024 and sell it today you would lose (18.00) from holding GAME HOURS or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GAME HOURS vs. Genovate Biotechnology Co
Performance |
| Timeline |
| GAME HOURS |
| Genovate Biotechnology |
GAME HOURS and Genovate Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAME HOURS and Genovate Biotechnology
The main advantage of trading using opposite GAME HOURS and Genovate Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAME HOURS position performs unexpectedly, Genovate Biotechnology 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 Genovate Biotechnology will offset losses from the drop in Genovate Biotechnology's long position.| GAME HOURS vs. Gamania Digital Entertainment | GAME HOURS vs. Soft World International | GAME HOURS vs. X Legend Entertainment Co | GAME HOURS vs. Userjoy Technology Co |
| Genovate Biotechnology vs. Johnson Health Tech | Genovate Biotechnology vs. Arbor Technology | Genovate Biotechnology vs. Asmedia Technology | Genovate Biotechnology vs. Phytohealth Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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