Correlation Between GameStop Corp and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and HEXINDO ADIPERKASA, you can compare the effects of market volatilities on GameStop Corp and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and HEXINDO ADIPERKASA.
Diversification Opportunities for GameStop Corp and HEXINDO ADIPERKASA
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and HEXINDO is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of GameStop Corp i.e., GameStop Corp and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between GameStop Corp and HEXINDO ADIPERKASA
Assuming the 90 days trading horizon GameStop Corp is expected to generate 3.71 times more return on investment than HEXINDO ADIPERKASA. However, GameStop Corp is 3.71 times more volatile than HEXINDO ADIPERKASA. It trades about 0.34 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about -0.4 per unit of risk. If you would invest 2,033 in GameStop Corp on September 3, 2024 and sell it today you would earn a total of 650.00 from holding GameStop Corp or generate 31.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| GameStop Corp |
| HEXINDO ADIPERKASA |
GameStop Corp and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and HEXINDO ADIPERKASA
The main advantage of trading using opposite GameStop Corp and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.| GameStop Corp vs. MercadoLibre | GameStop Corp vs. eBay Inc | GameStop Corp vs. Genuine Parts | GameStop Corp vs. Superior Plus Corp |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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