Correlation Between Gaming Factory and VRG SA
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and VRG SA 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 VRG SA 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 VRG SA, you can compare the effects of market volatilities on Gaming Factory and VRG SA 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 VRG SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and VRG SA.
Diversification Opportunities for Gaming Factory and VRG SA
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaming and VRG is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and VRG SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VRG 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 VRG SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VRG SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and VRG SA go up and down completely randomly.
Pair Corralation between Gaming Factory and VRG SA
Assuming the 90 days trading horizon Gaming Factory SA is expected to under-perform the VRG SA. In addition to that, Gaming Factory is 3.95 times more volatile than VRG SA. It trades about -0.09 of its total potential returns per unit of risk. VRG SA is currently generating about -0.06 per unit of volatility. If you would invest 335.00 in VRG SA on September 14, 2024 and sell it today you would lose (6.00) from holding VRG SA or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming Factory SA vs. VRG SA
Performance |
| Timeline |
| Gaming Factory SA |
| VRG SA |
Gaming Factory and VRG SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and VRG SA
The main advantage of trading using opposite Gaming Factory and VRG SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, VRG SA 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 VRG SA will offset losses from the drop in VRG SA's long position.| Gaming Factory vs. Alior Bank SA | Gaming Factory vs. MCI Management SA | Gaming Factory vs. Play2Chill SA | Gaming Factory vs. Varsav Game Studios |
| VRG SA vs. Gaming Factory SA | VRG SA vs. Alior Bank SA | VRG SA vs. Bank Millennium SA | VRG SA vs. Igoria Trade 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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