Correlation Between Gaming Factory and AB SA
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and AB SA 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 Gaming Factory and AB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Factory SA and AB SA, you can compare the effects of market volatilities on Gaming Factory and AB SA 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 Gaming Factory with a short position of AB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and AB SA.
Diversification Opportunities for Gaming Factory and AB SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaming and ABE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and AB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB SA and Gaming Factory 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 Gaming Factory SA are associated (or correlated) with AB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and AB SA go up and down completely randomly.
Pair Corralation between Gaming Factory and AB SA
Assuming the 90 days trading horizon Gaming Factory SA is expected to under-perform the AB SA. In addition to that, Gaming Factory is 2.39 times more volatile than AB SA. It trades about -0.06 of its total potential returns per unit of risk. AB SA is currently generating about 0.02 per unit of volatility. If you would invest 8,900 in AB SA on August 30, 2024 and sell it today you would earn a total of 40.00 from holding AB SA or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. AB SA
Performance |
| Timeline |
| Gaming Factory SA |
| AB SA |
Gaming Factory and AB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and AB SA
The main advantage of trading using opposite Gaming Factory and AB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, AB SA 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 AB SA will offset losses from the drop in AB SA's long position.| Gaming Factory vs. Intersport Polska SA | Gaming Factory vs. Carlson Investments SA | Gaming Factory vs. Drago entertainment SA | Gaming Factory vs. Mlk Foods Public |
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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