Correlation Between Accord Financial and Gamehost
Can any of the company-specific risk be diversified away by investing in both Accord Financial and Gamehost 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 Accord Financial and Gamehost into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accord Financial Corp and Gamehost, you can compare the effects of market volatilities on Accord Financial and Gamehost 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 Accord Financial with a short position of Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accord Financial and Gamehost.
Diversification Opportunities for Accord Financial and Gamehost
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accord and Gamehost is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Accord Financial Corp and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and Accord Financial 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 Accord Financial Corp are associated (or correlated) with Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Accord Financial i.e., Accord Financial and Gamehost go up and down completely randomly.
Pair Corralation between Accord Financial and Gamehost
Assuming the 90 days trading horizon Accord Financial Corp is expected to under-perform the Gamehost. In addition to that, Accord Financial is 1.66 times more volatile than Gamehost. It trades about -0.14 of its total potential returns per unit of risk. Gamehost is currently generating about 0.02 per unit of volatility. If you would invest 1,042 in Gamehost on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Gamehost or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accord Financial Corp vs. Gamehost
Performance |
| Timeline |
| Accord Financial Corp |
| Gamehost |
Accord Financial and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accord Financial and Gamehost
The main advantage of trading using opposite Accord Financial and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accord Financial position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| Accord Financial vs. Algoma Central | Accord Financial vs. Chesswood Group Limited | Accord Financial vs. Clairvest Group | Accord Financial vs. Clarke Inc |
| Gamehost vs. Berkshire Hathaway CDR | Gamehost vs. Microsoft Corp CDR | Gamehost vs. Apple Inc CDR | Gamehost vs. Alphabet Inc CDR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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