Correlation Between G5 Entertainment and Crunchfish
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Crunchfish 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 Crunchfish 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 Crunchfish AB, you can compare the effects of market volatilities on G5 Entertainment and Crunchfish 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 Crunchfish. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Crunchfish.
Diversification Opportunities for G5 Entertainment and Crunchfish
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between G5EN and Crunchfish is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Crunchfish AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crunchfish 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 Crunchfish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crunchfish AB has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Crunchfish go up and down completely randomly.
Pair Corralation between G5 Entertainment and Crunchfish
Assuming the 90 days trading horizon G5 Entertainment publ is expected to generate 0.26 times more return on investment than Crunchfish. However, G5 Entertainment publ is 3.81 times less risky than Crunchfish. It trades about 0.33 of its potential returns per unit of risk. Crunchfish AB is currently generating about -0.23 per unit of risk. If you would invest 11,740 in G5 Entertainment publ on November 4, 2024 and sell it today you would earn a total of 1,260 from holding G5 Entertainment publ or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. Crunchfish AB
Performance |
| Timeline |
| G5 Entertainment publ |
| Crunchfish AB |
G5 Entertainment and Crunchfish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Crunchfish
The main advantage of trading using opposite G5 Entertainment and Crunchfish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Crunchfish 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 Crunchfish will offset losses from the drop in Crunchfish'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 |
| Crunchfish vs. Bambuser AB | Crunchfish vs. Maha Energy AB | Crunchfish vs. Cantargia AB | Crunchfish vs. Minesto 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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