Correlation Between US Global and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both US Global and Contagious Gaming 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 US Global and Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Contagious Gaming, you can compare the effects of market volatilities on US Global and Contagious Gaming 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 US Global with a short position of Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Contagious Gaming.
Diversification Opportunities for US Global and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GROW and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming and US Global 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 US Global Investors are associated (or correlated) with Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of US Global i.e., US Global and Contagious Gaming go up and down completely randomly.
Pair Corralation between US Global and Contagious Gaming
Given the investment horizon of 90 days US Global Investors is expected to under-perform the Contagious Gaming. But the stock apears to be less risky and, when comparing its historical volatility, US Global Investors is 4.38 times less risky than Contagious Gaming. The stock trades about 0.0 of its potential returns per unit of risk. The Contagious Gaming is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 0.87 in Contagious Gaming on September 4, 2024 and sell it today you would lose (0.65) from holding Contagious Gaming or give up 74.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Contagious Gaming
Performance |
| Timeline |
| US Global Investors |
| Contagious Gaming |
US Global and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Contagious Gaming
The main advantage of trading using opposite US Global and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| US Global vs. Visa Class A | US Global vs. Diamond Hill Investment | US Global vs. Distoken Acquisition | US Global vs. Associated Capital Group |
| Contagious Gaming vs. ArcelorMittal SA ADR | Contagious Gaming vs. Universal Music Group | Contagious Gaming vs. RBC Bearings Incorporated | Contagious Gaming vs. CECO Environmental Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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