Correlation Between Gamer Pakistan and Global Payments
Can any of the company-specific risk be diversified away by investing in both Gamer Pakistan and Global Payments 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 Gamer Pakistan and Global Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamer Pakistan Common and Global Payments, you can compare the effects of market volatilities on Gamer Pakistan and Global Payments 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 Gamer Pakistan with a short position of Global Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamer Pakistan and Global Payments.
Diversification Opportunities for Gamer Pakistan and Global Payments
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamer and Global is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gamer Pakistan Common and Global Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments and Gamer Pakistan 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 Gamer Pakistan Common are associated (or correlated) with Global Payments. 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 has no effect on the direction of Gamer Pakistan i.e., Gamer Pakistan and Global Payments go up and down completely randomly.
Pair Corralation between Gamer Pakistan and Global Payments
If you would invest 9,988 in Global Payments on August 24, 2024 and sell it today you would earn a total of 1,717 from holding Global Payments or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Gamer Pakistan Common vs. Global Payments
Performance |
| Timeline |
| Gamer Pakistan Common |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Payments |
Gamer Pakistan and Global Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamer Pakistan and Global Payments
The main advantage of trading using opposite Gamer Pakistan and Global Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamer Pakistan position performs unexpectedly, Global Payments 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 Payments will offset losses from the drop in Global Payments' long position.| Gamer Pakistan vs. Cedar Realty Trust | Gamer Pakistan vs. Grocery Outlet Holding | Gamer Pakistan vs. BBB Foods | Gamer Pakistan vs. Artisan Partners Asset |
| Global Payments vs. Copart Inc | Global Payments vs. ABM Industries Incorporated | Global Payments vs. Thomson Reuters Corp | Global Payments vs. Aramark 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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