Correlation Between GAMESTOP and Bollor SE
Can any of the company-specific risk be diversified away by investing in both GAMESTOP and Bollor SE 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 Bollor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and Bollor SE, you can compare the effects of market volatilities on GAMESTOP and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and Bollor SE.
Diversification Opportunities for GAMESTOP and Bollor SE
Very good diversification
The 3 months correlation between GAMESTOP and Bollor is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of GAMESTOP i.e., GAMESTOP and Bollor SE go up and down completely randomly.
Pair Corralation between GAMESTOP and Bollor SE
Assuming the 90 days trading horizon GAMESTOP is expected to generate 6.08 times more return on investment than Bollor SE. However, GAMESTOP is 6.08 times more volatile than Bollor SE. It trades about 0.05 of its potential returns per unit of risk. Bollor SE is currently generating about 0.03 per unit of risk. If you would invest 1,719 in GAMESTOP on September 15, 2024 and sell it today you would earn a total of 951.00 from holding GAMESTOP or generate 55.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. Bollor SE
Performance |
| Timeline |
| GAMESTOP |
| Bollor SE |
GAMESTOP and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and Bollor SE
The main advantage of trading using opposite GAMESTOP and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| GAMESTOP vs. REGAL ASIAN INVESTMENTS | GAMESTOP vs. KINGBOARD CHEMICAL | GAMESTOP vs. New Residential Investment | GAMESTOP vs. PennyMac Mortgage Investment |
| Bollor SE vs. FedEx | Bollor SE vs. Superior Plus Corp | Bollor SE vs. Origin Agritech | Bollor SE vs. INTUITIVE SURGICAL |
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 Positions Ratings module to 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.
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