Correlation Between Gaming Factory and Logintrade
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on Gaming Factory and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Logintrade.
Diversification Opportunities for Gaming Factory and Logintrade
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaming and Logintrade is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and Logintrade go up and down completely randomly.
Pair Corralation between Gaming Factory and Logintrade
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 0.47 times more return on investment than Logintrade. However, Gaming Factory SA is 2.15 times less risky than Logintrade. It trades about 0.2 of its potential returns per unit of risk. Logintrade SA is currently generating about 0.05 per unit of risk. If you would invest 674.00 in Gaming Factory SA on October 24, 2024 and sell it today you would earn a total of 66.00 from holding Gaming Factory SA or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Gaming Factory SA vs. Logintrade SA
Performance |
| Timeline |
| Gaming Factory SA |
| Logintrade SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Gaming Factory and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Logintrade
The main advantage of trading using opposite Gaming Factory and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| Gaming Factory vs. SOFTWARE MANSION SPOLKA | Gaming Factory vs. True Games Syndicate | Gaming Factory vs. PZ Cormay SA | Gaming Factory vs. Pyramid Games SA |
| Logintrade vs. Gaming Factory SA | Logintrade vs. Carlson Investments SA | Logintrade vs. Movie Games SA | Logintrade vs. TEN SQUARE 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |