Correlation Between Raketech Group and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both Raketech Group and G5 Entertainment 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 Raketech Group and G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raketech Group Holding and G5 Entertainment publ, you can compare the effects of market volatilities on Raketech Group and G5 Entertainment 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 Raketech Group with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raketech Group and G5 Entertainment.
Diversification Opportunities for Raketech Group and G5 Entertainment
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raketech and G5EN is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Raketech Group Holding and G5 Entertainment publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment publ and Raketech Group 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 Raketech Group Holding are associated (or correlated) with G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment publ has no effect on the direction of Raketech Group i.e., Raketech Group and G5 Entertainment go up and down completely randomly.
Pair Corralation between Raketech Group and G5 Entertainment
Assuming the 90 days trading horizon Raketech Group is expected to generate 32.86 times less return on investment than G5 Entertainment. In addition to that, Raketech Group is 1.6 times more volatile than G5 Entertainment publ. It trades about 0.0 of its total potential returns per unit of risk. G5 Entertainment publ is currently generating about 0.2 per unit of volatility. If you would invest 12,740 in G5 Entertainment publ on November 29, 2024 and sell it today you would earn a total of 1,460 from holding G5 Entertainment publ or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raketech Group Holding vs. G5 Entertainment publ
Performance |
| Timeline |
| Raketech Group Holding |
| G5 Entertainment publ |
Raketech Group and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raketech Group and G5 Entertainment
The main advantage of trading using opposite Raketech Group and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raketech Group position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
| G5 Entertainment vs. Stillfront Group AB | G5 Entertainment vs. Paradox Interactive AB | G5 Entertainment vs. Catena Media plc | G5 Entertainment vs. Betsson AB |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |