Correlation Between Gaming Factory and Powszechny Zaklad
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Powszechny Zaklad 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 Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen, you can compare the effects of market volatilities on Gaming Factory and Powszechny Zaklad 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 Powszechny Zaklad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Powszechny Zaklad.
Diversification Opportunities for Gaming Factory and Powszechny Zaklad
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and Powszechny is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Powszechny Zaklad Ubezpieczen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powszechny Zaklad 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 Powszechny Zaklad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powszechny Zaklad has no effect on the direction of Gaming Factory i.e., Gaming Factory and Powszechny Zaklad go up and down completely randomly.
Pair Corralation between Gaming Factory and Powszechny Zaklad
Assuming the 90 days trading horizon Gaming Factory is expected to generate 1.0 times less return on investment than Powszechny Zaklad. In addition to that, Gaming Factory is 1.93 times more volatile than Powszechny Zaklad Ubezpieczen. It trades about 0.03 of its total potential returns per unit of risk. Powszechny Zaklad Ubezpieczen is currently generating about 0.06 per unit of volatility. If you would invest 2,725 in Powszechny Zaklad Ubezpieczen on August 27, 2024 and sell it today you would earn a total of 1,607 from holding Powszechny Zaklad Ubezpieczen or generate 58.97% 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. Powszechny Zaklad Ubezpieczen
Performance |
| Timeline |
| Gaming Factory SA |
| Powszechny Zaklad |
Gaming Factory and Powszechny Zaklad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Powszechny Zaklad
The main advantage of trading using opposite Gaming Factory and Powszechny Zaklad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Powszechny Zaklad 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 Powszechny Zaklad will offset losses from the drop in Powszechny Zaklad's long position.| Gaming Factory vs. CD PROJEKT SA | Gaming Factory vs. 11 bit studios | Gaming Factory vs. Movie Games SA | Gaming Factory vs. Ultimate Games SA |
| Powszechny Zaklad vs. LSI Software SA | Powszechny Zaklad vs. Ultimate Games SA | Powszechny Zaklad vs. Detalion Games SA | Powszechny Zaklad vs. Gaming Factory 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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