Correlation Between GAMESTOP and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both GAMESTOP and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and CEOTRONICS, you can compare the effects of market volatilities on GAMESTOP and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and CEOTRONICS (CEKSG).
Diversification Opportunities for GAMESTOP and CEOTRONICS (CEKSG)
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMESTOP and CEOTRONICS is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of GAMESTOP i.e., GAMESTOP and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between GAMESTOP and CEOTRONICS (CEKSG)
Assuming the 90 days trading horizon GAMESTOP is expected to generate 3.11 times more return on investment than CEOTRONICS (CEKSG). However, GAMESTOP is 3.11 times more volatile than CEOTRONICS. It trades about 0.08 of its potential returns per unit of risk. CEOTRONICS is currently generating about 0.06 per unit of risk. If you would invest 1,147 in GAMESTOP on October 11, 2024 and sell it today you would earn a total of 2,056 from holding GAMESTOP or generate 179.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. CEOTRONICS
Performance |
| Timeline |
| GAMESTOP |
| CEOTRONICS (CEKSG) |
GAMESTOP and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and CEOTRONICS (CEKSG)
The main advantage of trading using opposite GAMESTOP and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| GAMESTOP vs. Ribbon Communications | GAMESTOP vs. Liberty Broadband | GAMESTOP vs. Marie Brizard Wine | GAMESTOP vs. Brockhaus Capital Management |
| CEOTRONICS (CEKSG) vs. Virtus Investment Partners | CEOTRONICS (CEKSG) vs. Perdoceo Education | CEOTRONICS (CEKSG) vs. betterU Education Corp | CEOTRONICS (CEKSG) vs. ECHO INVESTMENT ZY |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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