Correlation Between G5 Entertainment and Media
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on G5 Entertainment and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Media.
Diversification Opportunities for G5 Entertainment and Media
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between G5EN and Media is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Media go up and down completely randomly.
Pair Corralation between G5 Entertainment and Media
Assuming the 90 days trading horizon G5 Entertainment is expected to generate 22.24 times less return on investment than Media. But when comparing it to its historical volatility, G5 Entertainment publ is 2.04 times less risky than Media. It trades about 0.01 of its potential returns per unit of risk. Media and Games is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,776 in Media and Games on October 13, 2024 and sell it today you would earn a total of 1,619 from holding Media and Games or generate 91.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. Media and Games
Performance |
| Timeline |
| G5 Entertainment publ |
| Media and Games |
G5 Entertainment and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Media
The main advantage of trading using opposite G5 Entertainment and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Media 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 Media will offset losses from the drop in Media'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 |
| Media vs. Stillfront Group AB | Media vs. Embracer Group AB | Media vs. G5 Entertainment publ | Media vs. Evolution 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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