Correlation Between GameStop Corp and Logista
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Logista 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 GameStop Corp and Logista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Logista, you can compare the effects of market volatilities on GameStop Corp and Logista 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 GameStop Corp with a short position of Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Logista.
Diversification Opportunities for GameStop Corp and Logista
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GameStop and Logista is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista and GameStop Corp 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 GameStop Corp are associated (or correlated) with Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of GameStop Corp i.e., GameStop Corp and Logista go up and down completely randomly.
Pair Corralation between GameStop Corp and Logista
Assuming the 90 days trading horizon GameStop Corp is expected to generate 4.05 times more return on investment than Logista. However, GameStop Corp is 4.05 times more volatile than Logista. It trades about 0.04 of its potential returns per unit of risk. Logista is currently generating about 0.06 per unit of risk. If you would invest 2,500 in GameStop Corp on September 13, 2024 and sell it today you would earn a total of 51.00 from holding GameStop Corp or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
GameStop Corp vs. Logista
Performance |
| Timeline |
| GameStop Corp |
| Logista |
GameStop Corp and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Logista
The main advantage of trading using opposite GameStop Corp and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Logista 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 Logista will offset losses from the drop in Logista's long position.| GameStop Corp vs. Superior Plus Corp | GameStop Corp vs. SIVERS SEMICONDUCTORS AB | GameStop Corp vs. NorAm Drilling AS | GameStop Corp vs. Norsk Hydro ASA |
| Logista vs. Retail Estates NV | Logista vs. QURATE RETAIL INC | Logista vs. AGNC INVESTMENT | Logista vs. SPARTAN STORES |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |