Correlation Between Leading Edge and Gamehost
Can any of the company-specific risk be diversified away by investing in both Leading Edge and Gamehost 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 Leading Edge and Gamehost into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leading Edge Materials and Gamehost, you can compare the effects of market volatilities on Leading Edge and Gamehost 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 Leading Edge with a short position of Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leading Edge and Gamehost.
Diversification Opportunities for Leading Edge and Gamehost
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Leading and Gamehost is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Leading Edge Materials and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and Leading Edge 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 Leading Edge Materials are associated (or correlated) with Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Leading Edge i.e., Leading Edge and Gamehost go up and down completely randomly.
Pair Corralation between Leading Edge and Gamehost
Assuming the 90 days horizon Leading Edge Materials is expected to under-perform the Gamehost. In addition to that, Leading Edge is 5.16 times more volatile than Gamehost. It trades about -0.03 of its total potential returns per unit of risk. Gamehost is currently generating about 0.12 per unit of volatility. If you would invest 1,005 in Gamehost on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Gamehost or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Leading Edge Materials vs. Gamehost
Performance |
| Timeline |
| Leading Edge Materials |
| Gamehost |
Leading Edge and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leading Edge and Gamehost
The main advantage of trading using opposite Leading Edge and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leading Edge position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| Leading Edge vs. Hannan Metals | Leading Edge vs. Mkango Resources | Leading Edge vs. Elcora Advanced Materials | Leading Edge vs. Midnight Sun Mining |
| Gamehost vs. Medical Facilities | Gamehost vs. Information Services | Gamehost vs. K Bro Linen | Gamehost vs. Richards Packaging Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |