Correlation Between Gaming Innovation and Clean Seas
Can any of the company-specific risk be diversified away by investing in both Gaming Innovation and Clean Seas 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 Innovation and Clean Seas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Innovation Group and Clean Seas Seafood, you can compare the effects of market volatilities on Gaming Innovation and Clean Seas 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 Innovation with a short position of Clean Seas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Innovation and Clean Seas.
Diversification Opportunities for Gaming Innovation and Clean Seas
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gaming and Clean is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Innovation Group and Clean Seas Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Seas Seafood and Gaming Innovation 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 Innovation Group are associated (or correlated) with Clean Seas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Seas Seafood has no effect on the direction of Gaming Innovation i.e., Gaming Innovation and Clean Seas go up and down completely randomly.
Pair Corralation between Gaming Innovation and Clean Seas
Assuming the 90 days trading horizon Gaming Innovation Group is expected to generate 0.57 times more return on investment than Clean Seas. However, Gaming Innovation Group is 1.76 times less risky than Clean Seas. It trades about -0.18 of its potential returns per unit of risk. Clean Seas Seafood is currently generating about -0.25 per unit of risk. If you would invest 3,255 in Gaming Innovation Group on September 2, 2024 and sell it today you would lose (785.00) from holding Gaming Innovation Group or give up 24.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 93.94% |
| Values | Daily Returns |
Gaming Innovation Group vs. Clean Seas Seafood
Performance |
| Timeline |
| Gaming Innovation |
| Clean Seas Seafood |
Gaming Innovation and Clean Seas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Innovation and Clean Seas
The main advantage of trading using opposite Gaming Innovation and Clean Seas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Innovation position performs unexpectedly, Clean Seas 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 Clean Seas will offset losses from the drop in Clean Seas' long position.| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron ASA |
| Clean Seas vs. Masoval AS | Clean Seas vs. Andfjord Salmon AS | Clean Seas vs. Arctic Fish Holding | Clean Seas vs. Ice Fish Farm |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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