Correlation Between Inpro SA and Gamedust
Can any of the company-specific risk be diversified away by investing in both Inpro SA and Gamedust 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 Inpro SA and Gamedust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpro SA and Gamedust SA, you can compare the effects of market volatilities on Inpro SA and Gamedust 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 Inpro SA with a short position of Gamedust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpro SA and Gamedust.
Diversification Opportunities for Inpro SA and Gamedust
Weak diversification
The 3 months correlation between Inpro and Gamedust is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Inpro SA and Gamedust SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamedust SA and Inpro SA 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 Inpro SA are associated (or correlated) with Gamedust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamedust SA has no effect on the direction of Inpro SA i.e., Inpro SA and Gamedust go up and down completely randomly.
Pair Corralation between Inpro SA and Gamedust
Assuming the 90 days trading horizon Inpro SA is expected to generate 1.1 times more return on investment than Gamedust. However, Inpro SA is 1.1 times more volatile than Gamedust SA. It trades about 0.12 of its potential returns per unit of risk. Gamedust SA is currently generating about -0.3 per unit of risk. If you would invest 605.00 in Inpro SA on October 24, 2024 and sell it today you would earn a total of 25.00 from holding Inpro SA or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Inpro SA vs. Gamedust SA
Performance |
| Timeline |
| Inpro SA |
| Gamedust SA |
Inpro SA and Gamedust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpro SA and Gamedust
The main advantage of trading using opposite Inpro SA and Gamedust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpro SA position performs unexpectedly, Gamedust 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 Gamedust will offset losses from the drop in Gamedust's long position.| Inpro SA vs. MCI Management SA | Inpro SA vs. X Trade Brokers | Inpro SA vs. SOFTWARE MANSION SPOLKA | Inpro SA vs. Pyramid Games SA |
| Gamedust vs. Skyline Investment SA | Gamedust vs. Creativeforge Games SA | Gamedust vs. mBank SA | Gamedust vs. Vivid 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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