Correlation Between Investment Friends and Gaming Factory
Can any of the company-specific risk be diversified away by investing in both Investment Friends and Gaming Factory 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 Investment Friends and Gaming Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Friends Capital and Gaming Factory SA, you can compare the effects of market volatilities on Investment Friends and Gaming Factory 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 Investment Friends with a short position of Gaming Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Friends and Gaming Factory.
Diversification Opportunities for Investment Friends and Gaming Factory
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Gaming is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital and Gaming Factory SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Factory SA and Investment Friends 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 Investment Friends Capital are associated (or correlated) with Gaming Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Factory SA has no effect on the direction of Investment Friends i.e., Investment Friends and Gaming Factory go up and down completely randomly.
Pair Corralation between Investment Friends and Gaming Factory
If you would invest 728.00 in Gaming Factory SA on November 5, 2024 and sell it today you would earn a total of 232.00 from holding Gaming Factory SA or generate 31.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment Friends Capital vs. Gaming Factory SA
Performance |
| Timeline |
| Investment Friends |
| Gaming Factory SA |
Investment Friends and Gaming Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Friends and Gaming Factory
The main advantage of trading using opposite Investment Friends and Gaming Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Friends position performs unexpectedly, Gaming Factory 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 Gaming Factory will offset losses from the drop in Gaming Factory's long position.| Investment Friends vs. Kruk SA | Investment Friends vs. MW Trade SA | Investment Friends vs. Asseco Business Solutions | Investment Friends vs. Movie Games SA |
| Gaming Factory vs. MCI Management SA | Gaming Factory vs. PMPG Polskie Media | Gaming Factory vs. mBank SA | Gaming Factory vs. Investment Friends Capital |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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