Correlation Between GAMING FAC and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on GAMING FAC and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and MAVEN WIRELESS.
Diversification Opportunities for GAMING FAC and MAVEN WIRELESS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GAMING and MAVEN is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of GAMING FAC i.e., GAMING FAC and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between GAMING FAC and MAVEN WIRELESS
Assuming the 90 days horizon GAMING FAC SA is expected to generate 1.0 times more return on investment than MAVEN WIRELESS. However, GAMING FAC SA is 1.0 times less risky than MAVEN WIRELESS. It trades about 0.28 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about 0.16 per unit of risk. 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 |
GAMING FAC SA vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| GAMING FAC SA |
| MAVEN WIRELESS SWEDEN |
GAMING FAC and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and MAVEN WIRELESS
The main advantage of trading using opposite GAMING FAC and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| GAMING FAC vs. PEPTONIC MEDICAL | GAMING FAC vs. Medical Properties Trust | GAMING FAC vs. EEDUCATION ALBERT AB | GAMING FAC vs. Apollo Medical Holdings |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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