Correlation Between G5 Entertainment and BIMobject
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and BIMobject 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 BIMobject 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 BIMobject AB, you can compare the effects of market volatilities on G5 Entertainment and BIMobject 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 BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and BIMobject.
Diversification Opportunities for G5 Entertainment and BIMobject
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between G5EN and BIMobject is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB 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 BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and BIMobject go up and down completely randomly.
Pair Corralation between G5 Entertainment and BIMobject
Assuming the 90 days trading horizon G5 Entertainment is expected to generate 1.91 times less return on investment than BIMobject. But when comparing it to its historical volatility, G5 Entertainment publ is 2.06 times less risky than BIMobject. It trades about 0.34 of its potential returns per unit of risk. BIMobject AB is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 448.00 in BIMobject AB on October 26, 2024 and sell it today you would earn a total of 100.00 from holding BIMobject AB or generate 22.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
G5 Entertainment publ vs. BIMobject AB
Performance |
| Timeline |
| G5 Entertainment publ |
| BIMobject AB |
G5 Entertainment and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and BIMobject
The main advantage of trading using opposite G5 Entertainment and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject'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 |
| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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