Correlation Between GameSquare Holdings and SohuCom
Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings and SohuCom 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 SohuCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameSquare Holdings and SohuCom, you can compare the effects of market volatilities on GameSquare Holdings and SohuCom 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 SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and SohuCom.
Diversification Opportunities for GameSquare Holdings and SohuCom
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GameSquare and SohuCom is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom 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 SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and SohuCom go up and down completely randomly.
Pair Corralation between GameSquare Holdings and SohuCom
Given the investment horizon of 90 days GameSquare Holdings is expected to under-perform the SohuCom. In addition to that, GameSquare Holdings is 2.43 times more volatile than SohuCom. It trades about -0.03 of its total potential returns per unit of risk. SohuCom is currently generating about -0.03 per unit of volatility. If you would invest 1,143 in SohuCom on January 21, 2025 and sell it today you would lose (295.00) from holding SohuCom or give up 25.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameSquare Holdings vs. SohuCom
Performance |
| Timeline |
| GameSquare Holdings |
| SohuCom |
GameSquare Holdings and SohuCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameSquare Holdings and SohuCom
The main advantage of trading using opposite GameSquare Holdings and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom'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 |
| SohuCom vs. Snail, Class A | SohuCom vs. Playstudios | SohuCom vs. Playtika Holding Corp | SohuCom vs. Doubledown Interactive Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |