Correlation Between Gaming Realms and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Gaming Realms and Hilton Food 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 Gaming Realms and Hilton Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Realms plc and Hilton Food Group, you can compare the effects of market volatilities on Gaming Realms and Hilton Food 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 Gaming Realms with a short position of Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Realms and Hilton Food.
Diversification Opportunities for Gaming Realms and Hilton Food
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and Hilton is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Realms plc and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group and Gaming Realms 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 Gaming Realms plc are associated (or correlated) with Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Gaming Realms i.e., Gaming Realms and Hilton Food go up and down completely randomly.
Pair Corralation between Gaming Realms and Hilton Food
Assuming the 90 days trading horizon Gaming Realms is expected to generate 4.86 times less return on investment than Hilton Food. In addition to that, Gaming Realms is 1.86 times more volatile than Hilton Food Group. It trades about 0.0 of its total potential returns per unit of risk. Hilton Food Group is currently generating about 0.05 per unit of volatility. If you would invest 77,628 in Hilton Food Group on November 3, 2024 and sell it today you would earn a total of 10,772 from holding Hilton Food Group or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Gaming Realms plc vs. Hilton Food Group
Performance |
| Timeline |
| Gaming Realms plc |
| Hilton Food Group |
Gaming Realms and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Realms and Hilton Food
The main advantage of trading using opposite Gaming Realms and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Realms position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| Gaming Realms vs. National Beverage Corp | Gaming Realms vs. Molson Coors Beverage | Gaming Realms vs. SBM Offshore NV | Gaming Realms vs. Southwest Airlines Co |
| Hilton Food vs. Check Point Software | Hilton Food vs. Alliance Data Systems | Hilton Food vs. Learning Technologies Group | Hilton Food vs. Rosslyn Data Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |