Correlation Between GAMING FAC and INTER CARS
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and INTER CARS 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 INTER CARS 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 INTER CARS SA, you can compare the effects of market volatilities on GAMING FAC and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and INTER CARS.
Diversification Opportunities for GAMING FAC and INTER CARS
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMING and INTER is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of GAMING FAC i.e., GAMING FAC and INTER CARS go up and down completely randomly.
Pair Corralation between GAMING FAC and INTER CARS
Assuming the 90 days horizon GAMING FAC SA is expected to generate 1.58 times more return on investment than INTER CARS. However, GAMING FAC is 1.58 times more volatile than INTER CARS SA. It trades about 0.03 of its potential returns per unit of risk. INTER CARS SA is currently generating about 0.04 per unit of risk. If you would invest 126.00 in GAMING FAC SA on October 11, 2024 and sell it today you would earn a total of 42.00 from holding GAMING FAC SA or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. INTER CARS SA
Performance |
| Timeline |
| GAMING FAC SA |
| INTER CARS SA |
GAMING FAC and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and INTER CARS
The main advantage of trading using opposite GAMING FAC and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| GAMING FAC vs. NAKED WINES PLC | GAMING FAC vs. Transport International Holdings | GAMING FAC vs. GREENX METALS LTD | GAMING FAC vs. British American Tobacco |
| INTER CARS vs. OURGAME INTHOLDL 00005 | INTER CARS vs. GAMING FAC SA | INTER CARS vs. DATAGROUP SE | INTER CARS vs. INFORMATION SVC GRP |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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