Correlation Between GameSquare Holdings and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings and Golden Matrix 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 Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameSquare Holdings and Golden Matrix Group, you can compare the effects of market volatilities on GameSquare Holdings and Golden Matrix 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 Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and Golden Matrix.
Diversification Opportunities for GameSquare Holdings and Golden Matrix
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GameSquare and Golden is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and Golden Matrix go up and down completely randomly.
Pair Corralation between GameSquare Holdings and Golden Matrix
Given the investment horizon of 90 days GameSquare Holdings is expected to generate 1.19 times less return on investment than Golden Matrix. In addition to that, GameSquare Holdings is 1.18 times more volatile than Golden Matrix Group. It trades about 0.13 of its total potential returns per unit of risk. Golden Matrix Group is currently generating about 0.19 per unit of volatility. If you would invest 222.00 in Golden Matrix Group on August 26, 2024 and sell it today you would earn a total of 48.00 from holding Golden Matrix Group or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameSquare Holdings vs. Golden Matrix Group
Performance |
| Timeline |
| GameSquare Holdings |
| Golden Matrix Group |
GameSquare Holdings and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameSquare Holdings and Golden Matrix
The main advantage of trading using opposite GameSquare Holdings and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
| Golden Matrix vs. AEye Inc | Golden Matrix vs. Arqit Quantum Warrants | Golden Matrix vs. Xos Equity Warrants |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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