Correlation Between Gamedust and True Games
Can any of the company-specific risk be diversified away by investing in both Gamedust and True Games 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 True Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamedust SA and True Games Syndicate, you can compare the effects of market volatilities on Gamedust and True Games 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 True Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamedust and True Games.
Diversification Opportunities for Gamedust and True Games
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gamedust and True is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gamedust SA and True Games Syndicate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True Games Syndicate 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 True Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Games Syndicate has no effect on the direction of Gamedust i.e., Gamedust and True Games go up and down completely randomly.
Pair Corralation between Gamedust and True Games
Assuming the 90 days trading horizon Gamedust SA is expected to under-perform the True Games. In addition to that, Gamedust is 1.24 times more volatile than True Games Syndicate. It trades about -0.24 of its total potential returns per unit of risk. True Games Syndicate is currently generating about -0.05 per unit of volatility. If you would invest 46.00 in True Games Syndicate on November 5, 2024 and sell it today you would lose (1.00) from holding True Games Syndicate or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 68.42% |
| Values | Daily Returns |
Gamedust SA vs. True Games Syndicate
Performance |
| Timeline |
| Gamedust SA |
| True Games Syndicate |
Gamedust and True Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamedust and True Games
The main advantage of trading using opposite Gamedust and True Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamedust position performs unexpectedly, True Games 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 True Games will offset losses from the drop in True Games' long position.| Gamedust vs. NGG | Gamedust vs. Asseco Business Solutions | Gamedust vs. Movie Games SA | Gamedust vs. Altustfi |
| True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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