Correlation Between GameStop Corp and Wayside Technology
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Wayside Technology 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 Wayside Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Wayside Technology Group, you can compare the effects of market volatilities on GameStop Corp and Wayside Technology 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 Wayside Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Wayside Technology.
Diversification Opportunities for GameStop Corp and Wayside Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GameStop and Wayside is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Wayside Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayside Technology 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 Wayside Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayside Technology has no effect on the direction of GameStop Corp i.e., GameStop Corp and Wayside Technology go up and down completely randomly.
Pair Corralation between GameStop Corp and Wayside Technology
If you would invest 2,646 in GameStop Corp on September 14, 2024 and sell it today you would earn a total of 229.00 from holding GameStop Corp or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
GameStop Corp vs. Wayside Technology Group
Performance |
| Timeline |
| GameStop Corp |
| Wayside Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GameStop Corp and Wayside Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Wayside Technology
The main advantage of trading using opposite GameStop Corp and Wayside Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Wayside Technology 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 Wayside Technology will offset losses from the drop in Wayside Technology's long position.| GameStop Corp vs. Arhaus Inc | GameStop Corp vs. Floor Decor Holdings | GameStop Corp vs. Live Ventures | GameStop Corp vs. Macys Inc |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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