Correlation Between Gaming Factory and APS Energia
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and APS Energia 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 APS Energia 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 APS Energia SA, you can compare the effects of market volatilities on Gaming Factory and APS Energia 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 APS Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and APS Energia.
Diversification Opportunities for Gaming Factory and APS Energia
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaming and APS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and APS Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Energia 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 APS Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Energia SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and APS Energia go up and down completely randomly.
Pair Corralation between Gaming Factory and APS Energia
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 0.86 times more return on investment than APS Energia. However, Gaming Factory SA is 1.16 times less risky than APS Energia. It trades about 0.03 of its potential returns per unit of risk. APS Energia SA is currently generating about 0.01 per unit of risk. If you would invest 562.00 in Gaming Factory SA on September 3, 2024 and sell it today you would earn a total of 156.00 from holding Gaming Factory SA or generate 27.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. APS Energia SA
Performance |
| Timeline |
| Gaming Factory SA |
| APS Energia SA |
Gaming Factory and APS Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and APS Energia
The main advantage of trading using opposite Gaming Factory and APS Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, APS Energia 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 APS Energia will offset losses from the drop in APS Energia's long position.| Gaming Factory vs. Movie Games SA | Gaming Factory vs. Echo Investment SA | Gaming Factory vs. Skyline Investment SA | Gaming Factory vs. Monnari Trade SA |
| APS Energia vs. Asseco Business Solutions | APS Energia vs. Detalion Games SA | APS Energia vs. Kogeneracja SA | APS Energia vs. Asseco South Eastern |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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