Correlation Between LSI Software and Gaming Factory
Can any of the company-specific risk be diversified away by investing in both LSI Software 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 LSI Software and Gaming Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LSI Software SA and Gaming Factory SA, you can compare the effects of market volatilities on LSI Software 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 LSI Software with a short position of Gaming Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Software and Gaming Factory.
Diversification Opportunities for LSI Software and Gaming Factory
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between LSI and Gaming is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding LSI Software SA 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 LSI Software 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 LSI Software SA 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 LSI Software i.e., LSI Software and Gaming Factory go up and down completely randomly.
Pair Corralation between LSI Software and Gaming Factory
Assuming the 90 days trading horizon LSI Software is expected to generate 4.7 times less return on investment than Gaming Factory. In addition to that, LSI Software SA is as risky as Gaming Factory. It trades about 0.08 of its total potential returns per unit of risk. Gaming Factory SA is currently generating about 0.39 per unit of volatility. 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LSI Software SA vs. Gaming Factory SA
Performance |
| Timeline |
| LSI Software SA |
| Gaming Factory SA |
LSI Software and Gaming Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Software and Gaming Factory
The main advantage of trading using opposite LSI Software and Gaming Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Software 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.| LSI Software vs. True Games Syndicate | LSI Software vs. PMPG Polskie Media | LSI Software vs. TEN SQUARE GAMES | LSI Software vs. GreenX Metals |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |