Correlation Between Carmat SA and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both Carmat SA 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 Carmat SA and GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and GAMESTOP, you can compare the effects of market volatilities on Carmat SA 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 Carmat SA with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and GAMESTOP.
Diversification Opportunities for Carmat SA and GAMESTOP
Very good diversification
The 3 months correlation between Carmat and GAMESTOP is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and Carmat SA 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 Carmat SA 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 Carmat SA i.e., Carmat SA and GAMESTOP go up and down completely randomly.
Pair Corralation between Carmat SA and GAMESTOP
Assuming the 90 days horizon Carmat SA is expected to under-perform the GAMESTOP. In addition to that, Carmat SA is 1.16 times more volatile than GAMESTOP. It trades about -0.21 of its total potential returns per unit of risk. GAMESTOP is currently generating about 0.35 per unit of volatility. If you would invest 2,028 in GAMESTOP on September 1, 2024 and sell it today you would earn a total of 674.00 from holding GAMESTOP or generate 33.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carmat SA vs. GAMESTOP
Performance |
| Timeline |
| Carmat SA |
| GAMESTOP |
Carmat SA and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and GAMESTOP
The main advantage of trading using opposite Carmat SA and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA 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.| Carmat SA vs. National Retail Properties | Carmat SA vs. Sunstone Hotel Investors | Carmat SA vs. CARSALESCOM | Carmat SA vs. FAST RETAIL ADR |
| 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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