Correlation Between G5 Entertainment and Adventure Box
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Adventure Box 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 G5 Entertainment and Adventure Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment publ and Adventure Box Technology, you can compare the effects of market volatilities on G5 Entertainment and Adventure Box 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 G5 Entertainment with a short position of Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Adventure Box.
Diversification Opportunities for G5 Entertainment and Adventure Box
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between G5EN and Adventure is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology and G5 Entertainment 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 G5 Entertainment publ are associated (or correlated) with Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Adventure Box go up and down completely randomly.
Pair Corralation between G5 Entertainment and Adventure Box
Assuming the 90 days trading horizon G5 Entertainment publ is expected to generate 0.14 times more return on investment than Adventure Box. However, G5 Entertainment publ is 7.31 times less risky than Adventure Box. It trades about 0.33 of its potential returns per unit of risk. Adventure Box Technology is currently generating about -0.03 per unit of risk. If you would invest 11,720 in G5 Entertainment publ on November 3, 2024 and sell it today you would earn a total of 1,280 from holding G5 Entertainment publ or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. Adventure Box Technology
Performance |
| Timeline |
| G5 Entertainment publ |
| Adventure Box Technology |
G5 Entertainment and Adventure Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Adventure Box
The main advantage of trading using opposite G5 Entertainment and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box's long position.| G5 Entertainment vs. Stillfront Group AB | G5 Entertainment vs. Paradox Interactive AB | G5 Entertainment vs. Catena Media plc | G5 Entertainment vs. Betsson AB |
| Adventure Box vs. Flexion Mobile PLC | Adventure Box vs. Stillfront Group AB | Adventure Box vs. iZafe Group AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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