Correlation Between Gaming Factory and Saule Technologies
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Saule Technologies 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 Saule Technologies 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 Saule Technologies SA, you can compare the effects of market volatilities on Gaming Factory and Saule Technologies 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 Saule Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Saule Technologies.
Diversification Opportunities for Gaming Factory and Saule Technologies
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gaming and Saule is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Saule Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saule Technologies 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 Saule Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saule Technologies has no effect on the direction of Gaming Factory i.e., Gaming Factory and Saule Technologies go up and down completely randomly.
Pair Corralation between Gaming Factory and Saule Technologies
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 1.04 times more return on investment than Saule Technologies. However, Gaming Factory is 1.04 times more volatile than Saule Technologies SA. It trades about 0.03 of its potential returns per unit of risk. Saule Technologies SA is currently generating about -0.06 per unit of risk. If you would invest 570.00 in Gaming Factory SA on August 28, 2024 and sell it today you would earn a total of 186.00 from holding Gaming Factory SA or generate 32.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. Saule Technologies SA
Performance |
| Timeline |
| Gaming Factory SA |
| Saule Technologies |
Gaming Factory and Saule Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Saule Technologies
The main advantage of trading using opposite Gaming Factory and Saule Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Saule Technologies 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 Saule Technologies will offset losses from the drop in Saule Technologies' long position.| Gaming Factory vs. CD PROJEKT SA | Gaming Factory vs. Movie Games SA | Gaming Factory vs. Ultimate Games SA |
| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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