Correlation Between CONTAGIOUS GAMING and GMO Internet
Can any of the company-specific risk be diversified away by investing in both CONTAGIOUS GAMING and GMO Internet 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 GMO Internet 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 GMO Internet, you can compare the effects of market volatilities on CONTAGIOUS GAMING and GMO Internet 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 GMO Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and GMO Internet.
Diversification Opportunities for CONTAGIOUS GAMING and GMO Internet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONTAGIOUS and GMO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONTAGIOUS GAMING INC and GMO Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMO Internet 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 GMO Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMO Internet has no effect on the direction of CONTAGIOUS GAMING i.e., CONTAGIOUS GAMING and GMO Internet go up and down completely randomly.
Pair Corralation between CONTAGIOUS GAMING and GMO Internet
If you would invest 1,600 in GMO Internet on October 29, 2024 and sell it today you would earn a total of 20.00 from holding GMO Internet or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
CONTAGIOUS GAMING INC vs. GMO Internet
Performance |
| Timeline |
| CONTAGIOUS GAMING INC |
| GMO Internet |
CONTAGIOUS GAMING and GMO Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONTAGIOUS GAMING and GMO Internet
The main advantage of trading using opposite CONTAGIOUS GAMING and GMO Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONTAGIOUS GAMING position performs unexpectedly, GMO Internet 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 GMO Internet will offset losses from the drop in GMO Internet's long position.| CONTAGIOUS GAMING vs. Japan Asia Investment | CONTAGIOUS GAMING vs. Apollo Investment Corp | CONTAGIOUS GAMING vs. ECHO INVESTMENT ZY | CONTAGIOUS GAMING vs. Eidesvik Offshore ASA |
| GMO Internet vs. Yuexiu Transport Infrastructure | GMO Internet vs. BROADWIND ENRGY | GMO Internet vs. Hanison Construction Holdings | GMO Internet vs. Gold Road Resources |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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