Correlation Between Gaming Factory and Wikana SA
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Wikana 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 Wikana 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 Wikana SA, you can compare the effects of market volatilities on Gaming Factory and Wikana 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 Wikana SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Wikana SA.
Diversification Opportunities for Gaming Factory and Wikana SA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gaming and Wikana is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Wikana SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wikana 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 Wikana SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wikana SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and Wikana SA go up and down completely randomly.
Pair Corralation between Gaming Factory and Wikana SA
Assuming the 90 days trading horizon Gaming Factory SA is expected to under-perform the Wikana SA. In addition to that, Gaming Factory is 4.11 times more volatile than Wikana SA. It trades about -0.07 of its total potential returns per unit of risk. Wikana SA is currently generating about -0.21 per unit of volatility. If you would invest 740.00 in Wikana SA on September 4, 2024 and sell it today you would lose (40.00) from holding Wikana SA or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gaming Factory SA vs. Wikana SA
Performance |
| Timeline |
| Gaming Factory SA |
| Wikana SA |
Gaming Factory and Wikana SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Factory and Wikana SA
The main advantage of trading using opposite Gaming Factory and Wikana SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, Wikana 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 Wikana SA will offset losses from the drop in Wikana SA's long position.| Gaming Factory vs. True Games Syndicate | Gaming Factory vs. Creotech Instruments SA | Gaming Factory vs. TEN SQUARE GAMES | Gaming Factory vs. Biztech Konsulting SA |
| Wikana SA vs. PMPG Polskie Media | Wikana SA vs. Play2Chill SA | Wikana SA vs. LSI Software SA | Wikana SA vs. Echo Investment 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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