Correlation Between GameOn Entertainment and CD Projekt
Can any of the company-specific risk be diversified away by investing in both GameOn Entertainment and CD Projekt 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 GameOn Entertainment and CD Projekt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameOn Entertainment Technologies and CD Projekt SA, you can compare the effects of market volatilities on GameOn Entertainment and CD Projekt 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 GameOn Entertainment with a short position of CD Projekt. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameOn Entertainment and CD Projekt.
Diversification Opportunities for GameOn Entertainment and CD Projekt
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GameOn and OTGLY is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GameOn Entertainment Technolog and CD Projekt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD Projekt SA and GameOn Entertainment 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 GameOn Entertainment Technologies are associated (or correlated) with CD Projekt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD Projekt SA has no effect on the direction of GameOn Entertainment i.e., GameOn Entertainment and CD Projekt go up and down completely randomly.
Pair Corralation between GameOn Entertainment and CD Projekt
Assuming the 90 days horizon GameOn Entertainment is expected to generate 5.91 times less return on investment than CD Projekt. In addition to that, GameOn Entertainment is 8.28 times more volatile than CD Projekt SA. It trades about 0.0 of its total potential returns per unit of risk. CD Projekt SA is currently generating about 0.09 per unit of volatility. If you would invest 830.00 in CD Projekt SA on September 2, 2024 and sell it today you would earn a total of 189.00 from holding CD Projekt SA or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
GameOn Entertainment Technolog vs. CD Projekt SA
Performance |
| Timeline |
| GameOn Entertainment |
| CD Projekt SA |
GameOn Entertainment and CD Projekt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameOn Entertainment and CD Projekt
The main advantage of trading using opposite GameOn Entertainment and CD Projekt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameOn Entertainment position performs unexpectedly, CD Projekt 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 CD Projekt will offset losses from the drop in CD Projekt's long position.| GameOn Entertainment vs. CD Projekt SA | GameOn Entertainment vs. Playtika Holding Corp | GameOn Entertainment vs. Square Enix Holdings | GameOn Entertainment vs. Nexon Co Ltd |
| CD Projekt vs. Square Enix Holdings | CD Projekt vs. Capcom Co | CD Projekt vs. Sega Sammy Holdings | CD Projekt vs. Square Enix 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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