Correlation Between GameStop Corp and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Aerofoam Metals 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 GameStop Corp and Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Aerofoam Metals, you can compare the effects of market volatilities on GameStop Corp and Aerofoam Metals 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 GameStop Corp with a short position of Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Aerofoam Metals.
Diversification Opportunities for GameStop Corp and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals and GameStop Corp 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 GameStop Corp are associated (or correlated) with Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of GameStop Corp i.e., GameStop Corp and Aerofoam Metals go up and down completely randomly.
Pair Corralation between GameStop Corp and Aerofoam Metals
If you would invest 2,646 in GameStop Corp on September 14, 2024 and sell it today you would earn a total of 221.00 from holding GameStop Corp or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. Aerofoam Metals
Performance |
| Timeline |
| GameStop Corp |
| Aerofoam Metals |
GameStop Corp and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Aerofoam Metals
The main advantage of trading using opposite GameStop Corp and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| GameStop Corp vs. Arhaus Inc | GameStop Corp vs. Floor Decor Holdings | GameStop Corp vs. Live Ventures | GameStop Corp vs. Macys Inc |
| Aerofoam Metals vs. Arhaus Inc | Aerofoam Metals vs. Floor Decor Holdings | Aerofoam Metals vs. Live Ventures | Aerofoam Metals vs. ATT Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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