Correlation Between GAMESTOP and KRAKATAU STEEL
Can any of the company-specific risk be diversified away by investing in both GAMESTOP and KRAKATAU STEEL 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 and KRAKATAU STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and KRAKATAU STEEL B , you can compare the effects of market volatilities on GAMESTOP and KRAKATAU STEEL 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 with a short position of KRAKATAU STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and KRAKATAU STEEL.
Diversification Opportunities for GAMESTOP and KRAKATAU STEEL
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMESTOP and KRAKATAU is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP and KRAKATAU STEEL B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAKATAU STEEL B and GAMESTOP 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 are associated (or correlated) with KRAKATAU STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAKATAU STEEL B has no effect on the direction of GAMESTOP i.e., GAMESTOP and KRAKATAU STEEL go up and down completely randomly.
Pair Corralation between GAMESTOP and KRAKATAU STEEL
Assuming the 90 days trading horizon GAMESTOP is expected to generate 1.05 times more return on investment than KRAKATAU STEEL. However, GAMESTOP is 1.05 times more volatile than KRAKATAU STEEL B . It trades about 0.05 of its potential returns per unit of risk. KRAKATAU STEEL B is currently generating about 0.05 per unit of risk. If you would invest 2,089 in GAMESTOP on October 16, 2024 and sell it today you would earn a total of 971.00 from holding GAMESTOP or generate 46.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. KRAKATAU STEEL B
Performance |
| Timeline |
| GAMESTOP |
| KRAKATAU STEEL B |
GAMESTOP and KRAKATAU STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and KRAKATAU STEEL
The main advantage of trading using opposite GAMESTOP and KRAKATAU STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP position performs unexpectedly, KRAKATAU STEEL 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 KRAKATAU STEEL will offset losses from the drop in KRAKATAU STEEL's long position.| GAMESTOP vs. EEDUCATION ALBERT AB | GAMESTOP vs. STRAYER EDUCATION | GAMESTOP vs. BOS BETTER ONLINE | GAMESTOP vs. Adtalem Global Education |
| KRAKATAU STEEL vs. GAMESTOP | KRAKATAU STEEL vs. REVO INSURANCE SPA | KRAKATAU STEEL vs. BANKINTER ADR 2007 | KRAKATAU STEEL vs. MOVIE GAMES SA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance |