Correlation Between Gaming Factory and Gamedust
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Gamedust 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 Gamedust 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 Gamedust SA, you can compare the effects of market volatilities on Gaming Factory and Gamedust 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 Gamedust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Gamedust.
Diversification Opportunities for Gaming Factory and Gamedust
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and Gamedust is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Gamedust SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamedust 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 Gamedust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamedust SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and Gamedust go up and down completely randomly.
Pair Corralation between Gaming Factory and Gamedust
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 1.67 times more return on investment than Gamedust. However, Gaming Factory is 1.67 times more volatile than Gamedust SA. It trades about 0.18 of its potential returns per unit of risk. Gamedust SA is currently generating about -0.41 per unit of risk. If you would invest 700.00 in Gaming Factory SA on October 26, 2024 and sell it today you would earn a total of 68.00 from holding Gaming Factory SA or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. Gamedust SA
Performance |
| Timeline |
| Gaming Factory SA |
| Gamedust SA |
Gaming Factory and Gamedust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Gamedust
The main advantage of trading using opposite Gaming Factory and Gamedust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Gamedust 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 Gamedust will offset losses from the drop in Gamedust's long position.| Gaming Factory vs. New Tech Venture | Gaming Factory vs. Skyline Investment SA | Gaming Factory vs. SOFTWARE MANSION SPOLKA | Gaming Factory vs. Echo Investment SA |
| Gamedust vs. Saule Technologies SA | Gamedust vs. Cloud Technologies SA | Gamedust vs. Gaming Factory SA | Gamedust vs. All In Games |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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