Correlation Between National Retail and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and GAMESTOP, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and GAMESTOP.
Diversification Opportunities for National Retail and GAMESTOP
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and GAMESTOP is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and GAMESTOP go up and down completely randomly.
Pair Corralation between National Retail and GAMESTOP
Assuming the 90 days trading horizon National Retail Properties is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, National Retail Properties is 3.28 times less risky than GAMESTOP. The stock trades about -0.17 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,712 in GAMESTOP on October 17, 2024 and sell it today you would lose (7.00) from holding GAMESTOP or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. GAMESTOP
Performance |
| Timeline |
| National Retail Prop |
| GAMESTOP |
National Retail and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and GAMESTOP
The main advantage of trading using opposite National Retail and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Performance Food Group | National Retail vs. PNC Financial Services | National Retail vs. Direct Line Insurance | National Retail vs. Sun Life Financial |
| GAMESTOP vs. Meiko Electronics Co | GAMESTOP vs. Electronic Arts | GAMESTOP vs. Goosehead Insurance | GAMESTOP vs. TT Electronics PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |