Correlation Between GAMING FAC and De Grey
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and De Grey 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 De Grey 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 De Grey Mining, you can compare the effects of market volatilities on GAMING FAC and De Grey 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 De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and De Grey.
Diversification Opportunities for GAMING FAC and De Grey
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GAMING and DGD is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining 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 De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of GAMING FAC i.e., GAMING FAC and De Grey go up and down completely randomly.
Pair Corralation between GAMING FAC and De Grey
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the De Grey. But the stock apears to be less risky and, when comparing its historical volatility, GAMING FAC SA is 1.32 times less risky than De Grey. The stock trades about -0.05 of its potential returns per unit of risk. The De Grey Mining is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 82.00 in De Grey Mining on October 12, 2024 and sell it today you would earn a total of 32.00 from holding De Grey Mining or generate 39.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
GAMING FAC SA vs. De Grey Mining
Performance |
| Timeline |
| GAMING FAC SA |
| De Grey Mining |
GAMING FAC and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and De Grey
The main advantage of trading using opposite GAMING FAC and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| GAMING FAC vs. Sea Limited | GAMING FAC vs. Electronic Arts | GAMING FAC vs. NEXON Co | GAMING FAC vs. NEXON Co |
| De Grey vs. OURGAME INTHOLDL 00005 | De Grey vs. GAMING FAC SA | De Grey vs. AWILCO DRILLING PLC | De Grey vs. UNITED UTILITIES GR |
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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