Correlation Between Contagious Gaming and Timken
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming and Timken 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 Contagious Gaming and Timken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and Timken Company, you can compare the effects of market volatilities on Contagious Gaming and Timken 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 Contagious Gaming with a short position of Timken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and Timken.
Diversification Opportunities for Contagious Gaming and Timken
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contagious and Timken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and Timken Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timken Company and Contagious Gaming 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 Contagious Gaming are associated (or correlated) with Timken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timken Company has no effect on the direction of Contagious Gaming i.e., Contagious Gaming and Timken go up and down completely randomly.
Pair Corralation between Contagious Gaming and Timken
Assuming the 90 days horizon Contagious Gaming is expected to generate 1.43 times less return on investment than Timken. In addition to that, Contagious Gaming is 3.75 times more volatile than Timken Company. It trades about 0.0 of its total potential returns per unit of risk. Timken Company is currently generating about 0.02 per unit of volatility. If you would invest 6,900 in Timken Company on September 14, 2024 and sell it today you would earn a total of 698.00 from holding Timken Company or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Contagious Gaming vs. Timken Company
Performance |
| Timeline |
| Contagious Gaming |
| Timken Company |
Contagious Gaming and Timken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contagious Gaming and Timken
The main advantage of trading using opposite Contagious Gaming and Timken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming position performs unexpectedly, Timken 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 Timken will offset losses from the drop in Timken's long position.| Contagious Gaming vs. Timken Company | Contagious Gaming vs. European Wax Center | Contagious Gaming vs. Weyco Group | Contagious Gaming vs. Forsys Metals Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |