Correlation Between Contagious Gaming and Alaska Energy
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming and Alaska Energy 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 Contagious Gaming and Alaska Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and Alaska Energy Metals, you can compare the effects of market volatilities on Contagious Gaming and Alaska Energy 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 Contagious Gaming with a short position of Alaska Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and Alaska Energy.
Diversification Opportunities for Contagious Gaming and Alaska Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contagious and Alaska is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and Alaska Energy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Energy Metals and Contagious Gaming 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 Contagious Gaming are associated (or correlated) with Alaska Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Energy Metals has no effect on the direction of Contagious Gaming i.e., Contagious Gaming and Alaska Energy go up and down completely randomly.
Pair Corralation between Contagious Gaming and Alaska Energy
Assuming the 90 days horizon Contagious Gaming is expected to generate 0.95 times more return on investment than Alaska Energy. However, Contagious Gaming is 1.06 times less risky than Alaska Energy. It trades about 0.03 of its potential returns per unit of risk. Alaska Energy Metals is currently generating about 0.01 per unit of risk. If you would invest 1.00 in Contagious Gaming on October 28, 2024 and sell it today you would earn a total of 0.00 from holding Contagious Gaming or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contagious Gaming vs. Alaska Energy Metals
Performance |
| Timeline |
| Contagious Gaming |
| Alaska Energy Metals |
Contagious Gaming and Alaska Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contagious Gaming and Alaska Energy
The main advantage of trading using opposite Contagious Gaming and Alaska Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming position performs unexpectedly, Alaska Energy 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 Alaska Energy will offset losses from the drop in Alaska Energy's long position.| Contagious Gaming vs. Nicola Mining | Contagious Gaming vs. TUT Fitness Group | Contagious Gaming vs. NeXGold Mining Corp | Contagious Gaming vs. Andlauer Healthcare Gr |
| Alaska Energy vs. Data Communications Management | Alaska Energy vs. Maple Peak Investments | Alaska Energy vs. Brookfield Investments | Alaska Energy vs. CVW CleanTech |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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