Correlation Between Gaming Factory and Play2Chill
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Play2Chill 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 Play2Chill 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 Play2Chill SA, you can compare the effects of market volatilities on Gaming Factory and Play2Chill 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 Play2Chill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Play2Chill.
Diversification Opportunities for Gaming Factory and Play2Chill
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaming and Play2Chill is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Play2Chill SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Play2Chill 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 Play2Chill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Play2Chill SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and Play2Chill go up and down completely randomly.
Pair Corralation between Gaming Factory and Play2Chill
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 0.87 times more return on investment than Play2Chill. However, Gaming Factory SA is 1.15 times less risky than Play2Chill. It trades about 0.35 of its potential returns per unit of risk. Play2Chill SA is currently generating about -0.2 per unit of risk. If you would invest 736.00 in Gaming Factory SA on November 3, 2024 and sell it today you would earn a total of 224.00 from holding Gaming Factory SA or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gaming Factory SA vs. Play2Chill SA
Performance |
| Timeline |
| Gaming Factory SA |
| Play2Chill SA |
Gaming Factory and Play2Chill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Play2Chill
The main advantage of trading using opposite Gaming Factory and Play2Chill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Play2Chill 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 Play2Chill will offset losses from the drop in Play2Chill's long position.| Gaming Factory vs. CD PROJEKT SA | Gaming Factory vs. PLAYWAY SA | Gaming Factory vs. 11 bit studios | Gaming Factory vs. TEN SQUARE GAMES |
| Play2Chill vs. Poznanska Korporacja Budowlana | Play2Chill vs. Esotiq Henderson SA | Play2Chill vs. Toya SA | Play2Chill vs. Betacom 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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