Correlation Between GAMING FAC and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and VARIOUS EATERIES 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS, you can compare the effects of market volatilities on GAMING FAC and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and VARIOUS EATERIES.
Diversification Opportunities for GAMING FAC and VARIOUS EATERIES
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMING and VARIOUS is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of GAMING FAC i.e., GAMING FAC and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between GAMING FAC and VARIOUS EATERIES
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the VARIOUS EATERIES. In addition to that, GAMING FAC is 4.59 times more volatile than VARIOUS EATERIES LS. It trades about -0.04 of its total potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about 0.21 per unit of volatility. If you would invest 20.00 in VARIOUS EATERIES LS on September 1, 2024 and sell it today you would earn a total of 1.00 from holding VARIOUS EATERIES LS or generate 5.0% 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. VARIOUS EATERIES LS
Performance |
| Timeline |
| GAMING FAC SA |
| VARIOUS EATERIES |
GAMING FAC and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and VARIOUS EATERIES
The main advantage of trading using opposite GAMING FAC and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| GAMING FAC vs. Computer And Technologies | GAMING FAC vs. Haier Smart Home | GAMING FAC vs. Neinor Homes SA | GAMING FAC vs. bet at home AG |
| VARIOUS EATERIES vs. USWE SPORTS AB | VARIOUS EATERIES vs. Fukuyama Transporting Co | VARIOUS EATERIES vs. Transport International Holdings | VARIOUS EATERIES vs. NetSol Technologies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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