Correlation Between GAMESTOP and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both GAMESTOP and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and HEXINDO ADIPERKASA, you can compare the effects of market volatilities on GAMESTOP and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and HEXINDO ADIPERKASA.
Diversification Opportunities for GAMESTOP and HEXINDO ADIPERKASA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GAMESTOP and HEXINDO is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of GAMESTOP i.e., GAMESTOP and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between GAMESTOP and HEXINDO ADIPERKASA
Assuming the 90 days trading horizon GAMESTOP is expected to generate 2.38 times more return on investment than HEXINDO ADIPERKASA. However, GAMESTOP is 2.38 times more volatile than HEXINDO ADIPERKASA. It trades about 0.28 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about -0.29 per unit of risk. If you would invest 2,047 in GAMESTOP on September 4, 2024 and sell it today you would earn a total of 553.00 from holding GAMESTOP or generate 27.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| GAMESTOP |
| HEXINDO ADIPERKASA |
GAMESTOP and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and HEXINDO ADIPERKASA
The main advantage of trading using opposite GAMESTOP and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.The idea behind GAMESTOP and HEXINDO ADIPERKASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HEXINDO ADIPERKASA vs. Selective Insurance Group | HEXINDO ADIPERKASA vs. National Beverage Corp | HEXINDO ADIPERKASA vs. Monster Beverage Corp | HEXINDO ADIPERKASA vs. Ping An Insurance |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |