Correlation Between Gaming Factory and Immobile
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on Gaming Factory and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Immobile.
Diversification Opportunities for Gaming Factory and Immobile
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and Immobile is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of Gaming Factory i.e., Gaming Factory and Immobile go up and down completely randomly.
Pair Corralation between Gaming Factory and Immobile
Assuming the 90 days trading horizon Gaming Factory SA is expected to under-perform the Immobile. In addition to that, Gaming Factory is 1.31 times more volatile than Immobile. It trades about -0.04 of its total potential returns per unit of risk. Immobile is currently generating about -0.04 per unit of volatility. If you would invest 305.00 in Immobile on November 28, 2024 and sell it today you would lose (77.00) from holding Immobile or give up 25.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. Immobile
Performance |
| Timeline |
| Gaming Factory SA |
| Immobile |
Gaming Factory and Immobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Immobile
The main advantage of trading using opposite Gaming Factory and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile's long position.| Gaming Factory vs. Datawalk SA | Gaming Factory vs. Play2Chill SA | Gaming Factory vs. Skyline Investment SA | Gaming Factory vs. Echo Investment SA |
| Immobile vs. Medicalg | Immobile vs. Quantum Software SA | Immobile vs. Monnari Trade SA | Immobile vs. PLAYWAY SA |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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