Correlation Between Münchener Rück and GAMESTOP
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By analyzing existing cross correlation between Mnchener Rck AG and GAMESTOP, you can compare the effects of market volatilities on Münchener Rück and GAMESTOP 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 Münchener Rück with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Münchener Rück and GAMESTOP.
Diversification Opportunities for Münchener Rück and GAMESTOP
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Münchener and GAMESTOP is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mnchener Rck AG and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and Münchener Rück 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 Mnchener Rck AG are associated (or correlated) with GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of Münchener Rück i.e., Münchener Rück and GAMESTOP go up and down completely randomly.
Pair Corralation between Münchener Rück and GAMESTOP
Assuming the 90 days trading horizon Münchener Rück is expected to generate 5.76 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, Mnchener Rck AG is 4.8 times less risky than GAMESTOP. It trades about 0.28 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,055 in GAMESTOP on September 2, 2024 and sell it today you would earn a total of 647.00 from holding GAMESTOP or generate 31.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnchener Rck AG vs. GAMESTOP
Performance |
| Timeline |
| Mnchener Rck AG |
| GAMESTOP |
Münchener Rück and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Münchener Rück and GAMESTOP
The main advantage of trading using opposite Münchener Rück and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Münchener Rück position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| Münchener Rück vs. GAMESTOP | Münchener Rück vs. United Rentals | Münchener Rück vs. QINGCI GAMES INC | Münchener Rück vs. OURGAME INTHOLDL 00005 |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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