Correlation Between G5 Entertainment and CAG Group
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and CAG Group 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 CAG Group 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 CAG Group AB, you can compare the effects of market volatilities on G5 Entertainment and CAG Group 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 CAG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and CAG Group.
Diversification Opportunities for G5 Entertainment and CAG Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between G5EN and CAG is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and CAG Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAG Group 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 CAG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAG Group AB has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and CAG Group go up and down completely randomly.
Pair Corralation between G5 Entertainment and CAG Group
Assuming the 90 days trading horizon G5 Entertainment is expected to generate 1.05 times less return on investment than CAG Group. In addition to that, G5 Entertainment is 1.99 times more volatile than CAG Group AB. It trades about 0.01 of its total potential returns per unit of risk. CAG Group AB is currently generating about 0.02 per unit of volatility. If you would invest 10,600 in CAG Group AB on October 13, 2024 and sell it today you would earn a total of 300.00 from holding CAG Group AB or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. CAG Group AB
Performance |
| Timeline |
| G5 Entertainment publ |
| CAG Group AB |
G5 Entertainment and CAG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and CAG Group
The main advantage of trading using opposite G5 Entertainment and CAG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, CAG Group 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 CAG Group will offset losses from the drop in CAG Group'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 |
| CAG Group vs. Avensia publ AB | CAG Group vs. DevPort AB | CAG Group vs. B3 Consulting Group | CAG Group vs. Micro Systemation 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |