Correlation Between MAVEN WIRELESS and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS 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 MAVEN WIRELESS and GAMING FAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and GAMING FAC SA, you can compare the effects of market volatilities on MAVEN WIRELESS 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 MAVEN WIRELESS with a short position of GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and GAMING FAC.
Diversification Opportunities for MAVEN WIRELESS and GAMING FAC
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAVEN and GAMING is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and GAMING FAC go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and GAMING FAC
Assuming the 90 days horizon MAVEN WIRELESS is expected to generate 1.73 times less return on investment than GAMING FAC. In addition to that, MAVEN WIRELESS is 1.0 times more volatile than GAMING FAC SA. It trades about 0.16 of its total potential returns per unit of risk. GAMING FAC SA is currently generating about 0.28 per unit of volatility. If you would invest 168.00 in GAMING FAC SA on November 4, 2024 and sell it today you would earn a total of 45.00 from holding GAMING FAC SA or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. GAMING FAC SA
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| GAMING FAC SA |
MAVEN WIRELESS and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and GAMING FAC
The main advantage of trading using opposite MAVEN WIRELESS and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS 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.| MAVEN WIRELESS vs. BAKED GAMES SA | MAVEN WIRELESS vs. GAMES OPERATORS SA | MAVEN WIRELESS vs. IMPERIAL TOBACCO | MAVEN WIRELESS vs. Phibro Animal Health |
| GAMING FAC vs. PEPTONIC MEDICAL | GAMING FAC vs. Medical Properties Trust | GAMING FAC vs. EEDUCATION ALBERT AB | GAMING FAC vs. Apollo Medical Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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