Correlation Between GameStop Corp and ReposiTrak
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and ReposiTrak 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 ReposiTrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and ReposiTrak, you can compare the effects of market volatilities on GameStop Corp and ReposiTrak 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 ReposiTrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and ReposiTrak.
Diversification Opportunities for GameStop Corp and ReposiTrak
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GameStop and ReposiTrak is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and ReposiTrak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReposiTrak 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 ReposiTrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReposiTrak has no effect on the direction of GameStop Corp i.e., GameStop Corp and ReposiTrak go up and down completely randomly.
Pair Corralation between GameStop Corp and ReposiTrak
Considering the 90-day investment horizon GameStop Corp is expected to generate 3.76 times less return on investment than ReposiTrak. In addition to that, GameStop Corp is 1.59 times more volatile than ReposiTrak. It trades about 0.05 of its total potential returns per unit of risk. ReposiTrak is currently generating about 0.27 per unit of volatility. If you would invest 2,086 in ReposiTrak on September 15, 2024 and sell it today you would earn a total of 297.00 from holding ReposiTrak or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. ReposiTrak
Performance |
| Timeline |
| GameStop Corp |
| ReposiTrak |
GameStop Corp and ReposiTrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and ReposiTrak
The main advantage of trading using opposite GameStop Corp and ReposiTrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, ReposiTrak 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 ReposiTrak will offset losses from the drop in ReposiTrak's long position.| GameStop Corp vs. Arhaus Inc | GameStop Corp vs. Floor Decor Holdings | GameStop Corp vs. Live Ventures | GameStop Corp vs. Macys Inc |
| ReposiTrak vs. GameStop Corp | ReposiTrak vs. Doubledown Interactive Co | ReposiTrak vs. Asure Software | ReposiTrak vs. Royalty Management Holding |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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