Correlation Between Gold Road and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both Gold Road and GAMES OPERATORS 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 Gold Road and GAMES OPERATORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and GAMES OPERATORS SA, you can compare the effects of market volatilities on Gold Road and GAMES OPERATORS 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 Gold Road with a short position of GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and GAMES OPERATORS.
Diversification Opportunities for Gold Road and GAMES OPERATORS
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gold and GAMES is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA and Gold Road 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 Gold Road Resources are associated (or correlated) with GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Gold Road i.e., Gold Road and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between Gold Road and GAMES OPERATORS
Assuming the 90 days horizon Gold Road Resources is expected to generate 0.92 times more return on investment than GAMES OPERATORS. However, Gold Road Resources is 1.09 times less risky than GAMES OPERATORS. It trades about 0.47 of its potential returns per unit of risk. GAMES OPERATORS SA is currently generating about -0.11 per unit of risk. If you would invest 125.00 in Gold Road Resources on November 4, 2024 and sell it today you would earn a total of 23.00 from holding Gold Road Resources or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gold Road Resources vs. GAMES OPERATORS SA
Performance |
| Timeline |
| Gold Road Resources |
| GAMES OPERATORS SA |
Gold Road and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and GAMES OPERATORS
The main advantage of trading using opposite Gold Road and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.| Gold Road vs. ZIJIN MINH UNSPADR20 | Gold Road vs. Newmont | Gold Road vs. Barrick Gold | Gold Road vs. Franco Nevada |
| GAMES OPERATORS vs. Yuexiu Transport Infrastructure | GAMES OPERATORS vs. NAKED WINES PLC | GAMES OPERATORS vs. INDO RAMA SYNTHETIC | GAMES OPERATORS vs. East Africa Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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