Correlation Between Gaming Factory and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and TEN SQUARE 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 TEN SQUARE 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 TEN SQUARE GAMES, you can compare the effects of market volatilities on Gaming Factory and TEN SQUARE 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 TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and TEN SQUARE.
Diversification Opportunities for Gaming Factory and TEN SQUARE
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaming and TEN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES 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 TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of Gaming Factory i.e., Gaming Factory and TEN SQUARE go up and down completely randomly.
Pair Corralation between Gaming Factory and TEN SQUARE
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 2.1 times more return on investment than TEN SQUARE. However, Gaming Factory is 2.1 times more volatile than TEN SQUARE GAMES. It trades about 0.03 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.07 per unit of risk. If you would invest 756.00 in Gaming Factory SA on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Gaming Factory SA or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| Gaming Factory SA |
| TEN SQUARE GAMES |
Gaming Factory and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and TEN SQUARE
The main advantage of trading using opposite Gaming Factory and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE'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 |
| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. Movie Games SA | TEN SQUARE vs. Ultimate Games 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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