Correlation Between CONTAGIOUS GAMING and Alfen NV
Can any of the company-specific risk be diversified away by investing in both CONTAGIOUS GAMING and Alfen NV 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 Alfen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONTAGIOUS GAMING INC and Alfen NV, you can compare the effects of market volatilities on CONTAGIOUS GAMING and Alfen NV 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 Alfen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and Alfen NV.
Diversification Opportunities for CONTAGIOUS GAMING and Alfen NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONTAGIOUS and Alfen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONTAGIOUS GAMING INC and Alfen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfen NV 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 INC are associated (or correlated) with Alfen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfen NV has no effect on the direction of CONTAGIOUS GAMING i.e., CONTAGIOUS GAMING and Alfen NV go up and down completely randomly.
Pair Corralation between CONTAGIOUS GAMING and Alfen NV
Assuming the 90 days trading horizon CONTAGIOUS GAMING INC is expected to generate 29.25 times more return on investment than Alfen NV. However, CONTAGIOUS GAMING is 29.25 times more volatile than Alfen NV. It trades about 0.2 of its potential returns per unit of risk. Alfen NV is currently generating about -0.06 per unit of risk. If you would invest 0.35 in CONTAGIOUS GAMING INC on November 1, 2024 and sell it today you would lose (0.05) from holding CONTAGIOUS GAMING INC or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
CONTAGIOUS GAMING INC vs. Alfen NV
Performance |
| Timeline |
| CONTAGIOUS GAMING INC |
| Alfen NV |
CONTAGIOUS GAMING and Alfen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONTAGIOUS GAMING and Alfen NV
The main advantage of trading using opposite CONTAGIOUS GAMING and Alfen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONTAGIOUS GAMING position performs unexpectedly, Alfen NV 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 Alfen NV will offset losses from the drop in Alfen NV's long position.| CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. Take Two Interactive Software | CONTAGIOUS GAMING vs. Aristocrat Leisure Limited |
| Alfen NV vs. BE Semiconductor Industries | Alfen NV vs. Sunny Optical Technology | Alfen NV vs. Nordic Semiconductor ASA | Alfen NV vs. AECOM TECHNOLOGY |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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