Correlation Between Carlson Investments and Gaming Factory
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Gaming Factory 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 Carlson Investments and Gaming Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Gaming Factory SA, you can compare the effects of market volatilities on Carlson Investments and Gaming Factory 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 Carlson Investments with a short position of Gaming Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Gaming Factory.
Diversification Opportunities for Carlson Investments and Gaming Factory
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlson and Gaming is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Gaming Factory SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Factory SA and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Gaming Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Factory SA has no effect on the direction of Carlson Investments i.e., Carlson Investments and Gaming Factory go up and down completely randomly.
Pair Corralation between Carlson Investments and Gaming Factory
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 1.02 times more return on investment than Gaming Factory. However, Carlson Investments is 1.02 times more volatile than Gaming Factory SA. It trades about 0.11 of its potential returns per unit of risk. Gaming Factory SA is currently generating about -0.06 per unit of risk. If you would invest 412.00 in Carlson Investments SA on August 31, 2024 and sell it today you would earn a total of 37.00 from holding Carlson Investments SA or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlson Investments SA vs. Gaming Factory SA
Performance |
| Timeline |
| Carlson Investments |
| Gaming Factory SA |
Carlson Investments and Gaming Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Gaming Factory
The main advantage of trading using opposite Carlson Investments and Gaming Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Gaming Factory 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 Gaming Factory will offset losses from the drop in Gaming Factory's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
| Gaming Factory vs. LSI Software SA | Gaming Factory vs. Quantum Software SA | Gaming Factory vs. CI Games SA | Gaming Factory vs. Carlson Investments SA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |