Correlation Between Gamedust and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Gamedust and Intersport Polska 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 Gamedust and Intersport Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamedust SA and Intersport Polska SA, you can compare the effects of market volatilities on Gamedust and Intersport Polska 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 Gamedust with a short position of Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamedust and Intersport Polska.
Diversification Opportunities for Gamedust and Intersport Polska
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamedust and Intersport is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gamedust SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska and Gamedust 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 Gamedust SA are associated (or correlated) with Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Gamedust i.e., Gamedust and Intersport Polska go up and down completely randomly.
Pair Corralation between Gamedust and Intersport Polska
Assuming the 90 days trading horizon Gamedust is expected to generate 2.06 times less return on investment than Intersport Polska. In addition to that, Gamedust is 1.33 times more volatile than Intersport Polska SA. It trades about 0.0 of its total potential returns per unit of risk. Intersport Polska SA is currently generating about 0.01 per unit of volatility. If you would invest 90.00 in Intersport Polska SA on August 30, 2024 and sell it today you would lose (19.00) from holding Intersport Polska SA or give up 21.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Gamedust SA vs. Intersport Polska SA
Performance |
| Timeline |
| Gamedust SA |
| Intersport Polska |
Gamedust and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamedust and Intersport Polska
The main advantage of trading using opposite Gamedust and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamedust position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.| Gamedust vs. NGG | Gamedust vs. Asseco Business Solutions | Gamedust vs. Detalion Games SA | Gamedust vs. CFI Holding SA |
| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. CFI Holding SA | Intersport Polska vs. HM Inwest SA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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