Correlation Between Gamedust and X Trade
Can any of the company-specific risk be diversified away by investing in both Gamedust and X Trade 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 X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamedust SA and X Trade Brokers, you can compare the effects of market volatilities on Gamedust and X Trade 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 X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamedust and X Trade.
Diversification Opportunities for Gamedust and X Trade
Very good diversification
The 3 months correlation between Gamedust and XTB is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gamedust SA and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Gamedust i.e., Gamedust and X Trade go up and down completely randomly.
Pair Corralation between Gamedust and X Trade
Assuming the 90 days trading horizon Gamedust SA is expected to under-perform the X Trade. In addition to that, Gamedust is 2.5 times more volatile than X Trade Brokers. It trades about -0.23 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.24 per unit of volatility. If you would invest 6,562 in X Trade Brokers on August 28, 2024 and sell it today you would earn a total of 518.00 from holding X Trade Brokers or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Gamedust SA vs. X Trade Brokers
Performance |
| Timeline |
| Gamedust SA |
| X Trade Brokers |
Gamedust and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamedust and X Trade
The main advantage of trading using opposite Gamedust and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamedust position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.| Gamedust vs. Asseco Business Solutions | Gamedust vs. Detalion Games SA | Gamedust vs. Asseco South Eastern | Gamedust vs. Movie Games SA |
| X Trade vs. Movie Games SA | X Trade vs. Ice Code Games | X Trade vs. Varsav Game Studios | X Trade vs. Igoria Trade 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 CEOs Directory module to screen CEOs from public companies around the world.
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