Correlation Between GameStop Corp and Neogen
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Neogen, you can compare the effects of market volatilities on GameStop Corp and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Neogen.
Diversification Opportunities for GameStop Corp and Neogen
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GameStop and Neogen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of GameStop Corp i.e., GameStop Corp and Neogen go up and down completely randomly.
Pair Corralation between GameStop Corp and Neogen
Considering the 90-day investment horizon GameStop Corp is expected to generate 1.34 times more return on investment than Neogen. However, GameStop Corp is 1.34 times more volatile than Neogen. It trades about 0.11 of its potential returns per unit of risk. Neogen is currently generating about -0.06 per unit of risk. If you would invest 2,314 in GameStop Corp on September 2, 2024 and sell it today you would earn a total of 591.00 from holding GameStop Corp or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. Neogen
Performance |
| Timeline |
| GameStop Corp |
| Neogen |
GameStop Corp and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Neogen
The main advantage of trading using opposite GameStop Corp and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| GameStop Corp vs. RH | GameStop Corp vs. Dicks Sporting Goods | GameStop Corp vs. Best Buy Co | GameStop Corp vs. AutoZone |
| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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