Correlation Between GameStop Corp and Global
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By analyzing existing cross correlation between GameStop Corp and Global Payments 265, you can compare the effects of market volatilities on GameStop Corp and Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Global.
Diversification Opportunities for GameStop Corp and Global
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GameStop and Global is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Global Payments 265 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 265 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 265 has no effect on the direction of GameStop Corp i.e., GameStop Corp and Global go up and down completely randomly.
Pair Corralation between GameStop Corp and Global
Considering the 90-day investment horizon GameStop Corp is expected to generate 31.61 times more return on investment than Global. However, GameStop Corp is 31.61 times more volatile than Global Payments 265. It trades about 0.04 of its potential returns per unit of risk. Global Payments 265 is currently generating about -0.01 per unit of risk. If you would invest 2,458 in GameStop Corp on September 12, 2024 and sell it today you would earn a total of 235.00 from holding GameStop Corp or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
GameStop Corp vs. Global Payments 265
Performance |
| Timeline |
| GameStop Corp |
| Global Payments 265 |
GameStop Corp and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Global
The main advantage of trading using opposite GameStop Corp and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Global 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 Global will offset losses from the drop in Global's long position.| GameStop Corp vs. RH | GameStop Corp vs. Dicks Sporting Goods | GameStop Corp vs. Best Buy Co | GameStop Corp vs. AutoZone |
| Global vs. AEP TEX INC | Global vs. US BANK NATIONAL | Global vs. Applied Blockchain | Global vs. Sprott Focus Trust |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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