Correlation Between Globe Trade and Movie Games
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Movie Games 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 Globe Trade and Movie Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and Movie Games SA, you can compare the effects of market volatilities on Globe Trade and Movie Games 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 Globe Trade with a short position of Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Movie Games.
Diversification Opportunities for Globe Trade and Movie Games
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globe and Movie is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games SA and Globe Trade 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 Globe Trade Centre are associated (or correlated) with Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of Globe Trade i.e., Globe Trade and Movie Games go up and down completely randomly.
Pair Corralation between Globe Trade and Movie Games
Assuming the 90 days trading horizon Globe Trade Centre is expected to under-perform the Movie Games. But the stock apears to be less risky and, when comparing its historical volatility, Globe Trade Centre is 1.47 times less risky than Movie Games. The stock trades about -0.01 of its potential returns per unit of risk. The Movie Games SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,350 in Movie Games SA on August 30, 2024 and sell it today you would lose (696.00) from holding Movie Games SA or give up 29.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. Movie Games SA
Performance |
| Timeline |
| Globe Trade Centre |
| Movie Games SA |
Globe Trade and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Movie Games
The main advantage of trading using opposite Globe Trade and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' long position.| Globe Trade vs. Asseco Business Solutions | Globe Trade vs. Detalion Games SA | Globe Trade vs. CFI Holding SA | Globe Trade vs. HM Inwest SA |
| Movie Games vs. CD PROJEKT SA | Movie Games vs. PLAYWAY SA | Movie Games vs. 11 bit studios | Movie Games vs. Ultimate 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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