Correlation Between Gamehost and Bip Investment
Can any of the company-specific risk be diversified away by investing in both Gamehost and Bip Investment 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 Gamehost and Bip Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamehost and Bip Investment Corp, you can compare the effects of market volatilities on Gamehost and Bip Investment 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 Gamehost with a short position of Bip Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamehost and Bip Investment.
Diversification Opportunities for Gamehost and Bip Investment
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gamehost and Bip is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and Bip Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bip Investment Corp and Gamehost 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 Gamehost are associated (or correlated) with Bip Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bip Investment Corp has no effect on the direction of Gamehost i.e., Gamehost and Bip Investment go up and down completely randomly.
Pair Corralation between Gamehost and Bip Investment
Assuming the 90 days horizon Gamehost is expected to generate 1.23 times less return on investment than Bip Investment. But when comparing it to its historical volatility, Gamehost is 1.09 times less risky than Bip Investment. It trades about 0.09 of its potential returns per unit of risk. Bip Investment Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,064 in Bip Investment Corp on September 15, 2024 and sell it today you would earn a total of 596.00 from holding Bip Investment Corp or generate 28.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamehost vs. Bip Investment Corp
Performance |
| Timeline |
| Gamehost |
| Bip Investment Corp |
Gamehost and Bip Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamehost and Bip Investment
The main advantage of trading using opposite Gamehost and Bip Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamehost position performs unexpectedly, Bip Investment 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 Bip Investment will offset losses from the drop in Bip Investment's long position.| Gamehost vs. Chesswood Group Limited | Gamehost vs. Medical Facilities | Gamehost vs. Information Services | Gamehost vs. K Bro Linen |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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