Correlation Between GAMING FAC and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and WAGNERS HOLDING 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 GAMING FAC and WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on GAMING FAC and WAGNERS HOLDING 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 GAMING FAC with a short position of WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and WAGNERS HOLDING.
Diversification Opportunities for GAMING FAC and WAGNERS HOLDING
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMING and WAGNERS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD and GAMING FAC 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 GAMING FAC SA are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of GAMING FAC i.e., GAMING FAC and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between GAMING FAC and WAGNERS HOLDING
Assuming the 90 days horizon GAMING FAC SA is expected to generate 2.38 times more return on investment than WAGNERS HOLDING. However, GAMING FAC is 2.38 times more volatile than WAGNERS HOLDING LTD. It trades about 0.19 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.01 per unit of risk. If you would invest 160.00 in GAMING FAC SA on October 15, 2024 and sell it today you would earn a total of 12.00 from holding GAMING FAC SA or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| GAMING FAC SA |
| WAGNERS HOLDING LTD |
GAMING FAC and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and WAGNERS HOLDING
The main advantage of trading using opposite GAMING FAC and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| GAMING FAC vs. Nippon Steel | GAMING FAC vs. Urban Outfitters | GAMING FAC vs. URBAN OUTFITTERS | GAMING FAC vs. Mount Gibson Iron |
| WAGNERS HOLDING vs. Daikin IndustriesLtd | WAGNERS HOLDING vs. Vulcan Materials | WAGNERS HOLDING vs. Heidelberg Materials AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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