Correlation Between GameStop Corp and ResMed
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and ResMed 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 ResMed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and ResMed Inc, you can compare the effects of market volatilities on GameStop Corp and ResMed 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 ResMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and ResMed.
Diversification Opportunities for GameStop Corp and ResMed
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GameStop and ResMed is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and ResMed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ResMed Inc 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 ResMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ResMed Inc has no effect on the direction of GameStop Corp i.e., GameStop Corp and ResMed go up and down completely randomly.
Pair Corralation between GameStop Corp and ResMed
Assuming the 90 days trading horizon GameStop Corp is expected to generate 1.2 times more return on investment than ResMed. However, GameStop Corp is 1.2 times more volatile than ResMed Inc. It trades about -0.13 of its potential returns per unit of risk. ResMed Inc is currently generating about -0.18 per unit of risk. If you would invest 2,598 in GameStop Corp on November 27, 2024 and sell it today you would lose (214.00) from holding GameStop Corp or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. ResMed Inc
Performance |
| Timeline |
| GameStop Corp |
| ResMed Inc |
GameStop Corp and ResMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and ResMed
The main advantage of trading using opposite GameStop Corp and ResMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, ResMed 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 ResMed will offset losses from the drop in ResMed's long position.| GameStop Corp vs. ScanSource | GameStop Corp vs. WESANA HEALTH HOLD | GameStop Corp vs. CanSino Biologics | GameStop Corp vs. Fevertree Drinks PLC |
| ResMed vs. LINMON MEDIA LTD | ResMed vs. Hellenic Telecommunications Organization | ResMed vs. GEELY AUTOMOBILE | ResMed vs. CNVISION MEDIA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |