Correlation Between GameStop Corp and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Thermo Fisher 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 Thermo Fisher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Thermo Fisher Scientific, you can compare the effects of market volatilities on GameStop Corp and Thermo Fisher 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 Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Thermo Fisher.
Diversification Opportunities for GameStop Corp and Thermo Fisher
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and Thermo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific 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 Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of GameStop Corp i.e., GameStop Corp and Thermo Fisher go up and down completely randomly.
Pair Corralation between GameStop Corp and Thermo Fisher
Assuming the 90 days trading horizon GameStop Corp is expected to generate 2.02 times more return on investment than Thermo Fisher. However, GameStop Corp is 2.02 times more volatile than Thermo Fisher Scientific. It trades about 0.08 of its potential returns per unit of risk. Thermo Fisher Scientific is currently generating about -0.04 per unit of risk. If you would invest 2,574 in GameStop Corp on September 12, 2024 and sell it today you would earn a total of 118.00 from holding GameStop Corp or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GameStop Corp vs. Thermo Fisher Scientific
Performance |
| Timeline |
| GameStop Corp |
| Thermo Fisher Scientific |
GameStop Corp and Thermo Fisher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Thermo Fisher
The main advantage of trading using opposite GameStop Corp and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher'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 |
| Thermo Fisher vs. MCEWEN MINING INC | Thermo Fisher vs. REINET INVESTMENTS SCA | Thermo Fisher vs. Western Copper and | Thermo Fisher vs. GALENA MINING LTD |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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