Correlation Between GameSquare Holdings and Leaf Mobile
Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings and Leaf Mobile 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 GameSquare Holdings and Leaf Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameSquare Holdings and Leaf Mobile, you can compare the effects of market volatilities on GameSquare Holdings and Leaf Mobile 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 GameSquare Holdings with a short position of Leaf Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and Leaf Mobile.
Diversification Opportunities for GameSquare Holdings and Leaf Mobile
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GameSquare and Leaf is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Leaf Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaf Mobile and GameSquare Holdings 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 GameSquare Holdings are associated (or correlated) with Leaf Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaf Mobile has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and Leaf Mobile go up and down completely randomly.
Pair Corralation between GameSquare Holdings and Leaf Mobile
Given the investment horizon of 90 days GameSquare Holdings is expected to under-perform the Leaf Mobile. In addition to that, GameSquare Holdings is 1.41 times more volatile than Leaf Mobile. It trades about -0.02 of its total potential returns per unit of risk. Leaf Mobile is currently generating about 0.01 per unit of volatility. If you would invest 58.00 in Leaf Mobile on August 28, 2024 and sell it today you would lose (16.00) from holding Leaf Mobile or give up 27.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameSquare Holdings vs. Leaf Mobile
Performance |
| Timeline |
| GameSquare Holdings |
| Leaf Mobile |
GameSquare Holdings and Leaf Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameSquare Holdings and Leaf Mobile
The main advantage of trading using opposite GameSquare Holdings and Leaf Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings position performs unexpectedly, Leaf Mobile 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 Leaf Mobile will offset losses from the drop in Leaf Mobile's long position.| GameSquare Holdings vs. AEye Inc | GameSquare Holdings vs. Arqit Quantum Warrants | GameSquare Holdings vs. Xos Equity Warrants |
| Leaf Mobile vs. GDEV Inc | Leaf Mobile vs. Doubledown Interactive Co | Leaf Mobile vs. Playstudios | Leaf Mobile vs. SohuCom |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance |