Correlation Between XLMedia PLC and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and GameStop Corp 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 XLMedia PLC and GameStop Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and GameStop Corp, you can compare the effects of market volatilities on XLMedia PLC and GameStop Corp 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 XLMedia PLC with a short position of GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and GameStop Corp.
Diversification Opportunities for XLMedia PLC and GameStop Corp
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XLMedia and GameStop is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and GameStop Corp go up and down completely randomly.
Pair Corralation between XLMedia PLC and GameStop Corp
If you would invest 2,033 in GameStop Corp on September 4, 2024 and sell it today you would earn a total of 650.00 from holding GameStop Corp or generate 31.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. GameStop Corp
Performance |
| Timeline |
| XLMedia PLC |
| GameStop Corp |
XLMedia PLC and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and GameStop Corp
The main advantage of trading using opposite XLMedia PLC and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, GameStop Corp 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 Corp will offset losses from the drop in GameStop Corp's long position.| XLMedia PLC vs. Alphabet Class A | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Prosus NV |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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