Correlation Between GAMING FAC and EAST SIDE
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and EAST SIDE 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 EAST SIDE 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 EAST SIDE GAMES, you can compare the effects of market volatilities on GAMING FAC and EAST SIDE 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 EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and EAST SIDE.
Diversification Opportunities for GAMING FAC and EAST SIDE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMING and EAST is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and EAST SIDE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST SIDE GAMES 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 EAST SIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST SIDE GAMES has no effect on the direction of GAMING FAC i.e., GAMING FAC and EAST SIDE go up and down completely randomly.
Pair Corralation between GAMING FAC and EAST SIDE
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the EAST SIDE. But the stock apears to be less risky and, when comparing its historical volatility, GAMING FAC SA is 1.43 times less risky than EAST SIDE. The stock trades about -0.12 of its potential returns per unit of risk. The EAST SIDE GAMES is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 51.00 in EAST SIDE GAMES on September 3, 2024 and sell it today you would lose (15.00) from holding EAST SIDE GAMES or give up 29.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. EAST SIDE GAMES
Performance |
| Timeline |
| GAMING FAC SA |
| EAST SIDE GAMES |
GAMING FAC and EAST SIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and EAST SIDE
The main advantage of trading using opposite GAMING FAC and EAST SIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, EAST SIDE 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 EAST SIDE will offset losses from the drop in EAST SIDE's long position.| GAMING FAC vs. Nintendo Co | GAMING FAC vs. Nintendo Co | GAMING FAC vs. Sea Limited | GAMING FAC vs. Take Two Interactive Software |
| EAST SIDE vs. Nintendo Co | EAST SIDE vs. Nintendo Co | EAST SIDE vs. Sea Limited | EAST SIDE vs. Take Two Interactive Software |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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