Correlation Between Value Partners and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both Value Partners and GAMESTOP 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 Value Partners and GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Partners Group and GAMESTOP, you can compare the effects of market volatilities on Value Partners and GAMESTOP 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 Value Partners with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Partners and GAMESTOP.
Diversification Opportunities for Value Partners and GAMESTOP
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Value and GAMESTOP is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Value Partners Group and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and Value Partners 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 Value Partners Group are associated (or correlated) with GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of Value Partners i.e., Value Partners and GAMESTOP go up and down completely randomly.
Pair Corralation between Value Partners and GAMESTOP
Assuming the 90 days trading horizon Value Partners Group is expected to under-perform the GAMESTOP. In addition to that, Value Partners is 1.06 times more volatile than GAMESTOP. It trades about -0.1 of its total potential returns per unit of risk. GAMESTOP is currently generating about 0.42 per unit of volatility. If you would invest 2,119 in GAMESTOP on August 31, 2024 and sell it today you would earn a total of 818.00 from holding GAMESTOP or generate 38.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Value Partners Group vs. GAMESTOP
Performance |
| Timeline |
| Value Partners Group |
| GAMESTOP |
Value Partners and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Partners and GAMESTOP
The main advantage of trading using opposite Value Partners and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Partners position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| Value Partners vs. FUYO GENERAL LEASE | Value Partners vs. British American Tobacco | Value Partners vs. PT Global Mediacom | Value Partners vs. Dave Busters Entertainment |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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