Correlation Between GDEV and Swarmio Media
Can any of the company-specific risk be diversified away by investing in both GDEV and Swarmio Media 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 GDEV and Swarmio Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDEV Inc and Swarmio Media Holdings, you can compare the effects of market volatilities on GDEV and Swarmio Media 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 GDEV with a short position of Swarmio Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDEV and Swarmio Media.
Diversification Opportunities for GDEV and Swarmio Media
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GDEV and Swarmio is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GDEV Inc and Swarmio Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swarmio Media Holdings and GDEV 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 GDEV Inc are associated (or correlated) with Swarmio Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swarmio Media Holdings has no effect on the direction of GDEV i.e., GDEV and Swarmio Media go up and down completely randomly.
Pair Corralation between GDEV and Swarmio Media
Given the investment horizon of 90 days GDEV Inc is expected to under-perform the Swarmio Media. But the stock apears to be less risky and, when comparing its historical volatility, GDEV Inc is 2.98 times less risky than Swarmio Media. The stock trades about -0.02 of its potential returns per unit of risk. The Swarmio Media Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.60 in Swarmio Media Holdings on August 28, 2024 and sell it today you would earn a total of 0.07 from holding Swarmio Media Holdings or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
GDEV Inc vs. Swarmio Media Holdings
Performance |
| Timeline |
| GDEV Inc |
| Swarmio Media Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GDEV and Swarmio Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDEV and Swarmio Media
The main advantage of trading using opposite GDEV and Swarmio Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDEV position performs unexpectedly, Swarmio Media 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 Swarmio Media will offset losses from the drop in Swarmio Media's long position.The idea behind GDEV Inc and Swarmio Media Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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