Correlation Between Golden Matrix and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both Golden Matrix and GameStop Corp 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 Golden Matrix and GameStop Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Matrix Group and GameStop Corp, you can compare the effects of market volatilities on Golden Matrix and GameStop Corp 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 Golden Matrix with a short position of GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and GameStop Corp.
Diversification Opportunities for Golden Matrix and GameStop Corp
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and GameStop is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp and Golden Matrix 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 Golden Matrix Group are associated (or correlated) with GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Golden Matrix i.e., Golden Matrix and GameStop Corp go up and down completely randomly.
Pair Corralation between Golden Matrix and GameStop Corp
Given the investment horizon of 90 days Golden Matrix is expected to generate 1.73 times less return on investment than GameStop Corp. In addition to that, Golden Matrix is 1.4 times more volatile than GameStop Corp. It trades about 0.16 of its total potential returns per unit of risk. GameStop Corp is currently generating about 0.38 per unit of volatility. If you would invest 2,054 in GameStop Corp on August 24, 2024 and sell it today you would earn a total of 728.00 from holding GameStop Corp or generate 35.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Golden Matrix Group vs. GameStop Corp
Performance |
| Timeline |
| Golden Matrix Group |
| GameStop Corp |
Golden Matrix and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and GameStop Corp
The main advantage of trading using opposite Golden Matrix and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
| GameStop Corp vs. RH | GameStop Corp vs. Dicks Sporting Goods | GameStop Corp vs. Best Buy Co | GameStop Corp vs. AutoZone |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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