Correlation Between G5 Entertainment and Divio Technologies
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By analyzing existing cross correlation between G5 Entertainment publ and Divio Technologies AB, you can compare the effects of market volatilities on G5 Entertainment and Divio Technologies 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 Divio Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Divio Technologies.
Diversification Opportunities for G5 Entertainment and Divio Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between G5EN and Divio is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Divio Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Divio Technologies 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 Divio Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Divio Technologies has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Divio Technologies go up and down completely randomly.
Pair Corralation between G5 Entertainment and Divio Technologies
Assuming the 90 days trading horizon G5 Entertainment publ is expected to under-perform the Divio Technologies. But the stock apears to be less risky and, when comparing its historical volatility, G5 Entertainment publ is 5.18 times less risky than Divio Technologies. The stock trades about -0.06 of its potential returns per unit of risk. The Divio Technologies AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Divio Technologies AB on September 2, 2024 and sell it today you would lose (3.00) from holding Divio Technologies AB or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. Divio Technologies AB
Performance |
| Timeline |
| G5 Entertainment publ |
| Divio Technologies |
G5 Entertainment and Divio Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Divio Technologies
The main advantage of trading using opposite G5 Entertainment and Divio Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Divio Technologies 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 Divio Technologies will offset losses from the drop in Divio Technologies' long position.| G5 Entertainment vs. Tele2 AB | G5 Entertainment vs. Swedbank AB | G5 Entertainment vs. Svenska Handelsbanken AB | G5 Entertainment vs. Nordea Bank Abp |
| Divio Technologies vs. G5 Entertainment publ | Divio Technologies vs. Catena Media plc | Divio Technologies vs. Crunchfish AB | Divio Technologies vs. FormPipe Software 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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