Correlation Between G5 Entertainment and Stillfront Group
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Stillfront 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 Stillfront 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 Stillfront Group AB, you can compare the effects of market volatilities on G5 Entertainment and Stillfront 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 Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Stillfront Group.
Diversification Opportunities for G5 Entertainment and Stillfront Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between G5EN and Stillfront is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Stillfront Group go up and down completely randomly.
Pair Corralation between G5 Entertainment and Stillfront Group
Assuming the 90 days trading horizon G5 Entertainment publ is expected to generate 0.62 times more return on investment than Stillfront Group. However, G5 Entertainment publ is 1.61 times less risky than Stillfront Group. It trades about -0.05 of its potential returns per unit of risk. Stillfront Group AB is currently generating about -0.05 per unit of risk. If you would invest 14,228 in G5 Entertainment publ on August 29, 2024 and sell it today you would lose (4,388) from holding G5 Entertainment publ or give up 30.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. Stillfront Group AB
Performance |
| Timeline |
| G5 Entertainment publ |
| Stillfront Group |
G5 Entertainment and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Stillfront Group
The main advantage of trading using opposite G5 Entertainment and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Stillfront 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 Stillfront Group will offset losses from the drop in Stillfront Group's long position.| G5 Entertainment vs. Precise Biometrics AB | G5 Entertainment vs. BE Group AB | G5 Entertainment vs. Softronic AB | G5 Entertainment vs. Bjorn Borg AB |
| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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