Correlation Between CONTAGIOUS GAMING and POLAR POWER
Can any of the company-specific risk be diversified away by investing in both CONTAGIOUS GAMING and POLAR POWER 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 POLAR POWER 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 POLAR POWER INC, you can compare the effects of market volatilities on CONTAGIOUS GAMING and POLAR POWER 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 POLAR POWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and POLAR POWER.
Diversification Opportunities for CONTAGIOUS GAMING and POLAR POWER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONTAGIOUS and POLAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONTAGIOUS GAMING INC and POLAR POWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POLAR POWER INC 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 POLAR POWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POLAR POWER INC has no effect on the direction of CONTAGIOUS GAMING i.e., CONTAGIOUS GAMING and POLAR POWER go up and down completely randomly.
Pair Corralation between CONTAGIOUS GAMING and POLAR POWER
Assuming the 90 days trading horizon CONTAGIOUS GAMING INC is expected to generate 18.12 times more return on investment than POLAR POWER. However, CONTAGIOUS GAMING is 18.12 times more volatile than POLAR POWER INC. It trades about 0.21 of its potential returns per unit of risk. POLAR POWER INC is currently generating about -0.01 per unit of risk. If you would invest 0.15 in CONTAGIOUS GAMING INC on October 13, 2024 and sell it today you would earn a total of 0.15 from holding CONTAGIOUS GAMING INC or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONTAGIOUS GAMING INC vs. POLAR POWER INC
Performance |
| Timeline |
| CONTAGIOUS GAMING INC |
| POLAR POWER INC |
CONTAGIOUS GAMING and POLAR POWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONTAGIOUS GAMING and POLAR POWER
The main advantage of trading using opposite CONTAGIOUS GAMING and POLAR POWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONTAGIOUS GAMING position performs unexpectedly, POLAR POWER 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 POLAR POWER will offset losses from the drop in POLAR POWER's long position.| CONTAGIOUS GAMING vs. TERADATA | CONTAGIOUS GAMING vs. MAG SILVER | CONTAGIOUS GAMING vs. Monument Mining Limited | CONTAGIOUS GAMING vs. MINCO SILVER |
| POLAR POWER vs. CONTAGIOUS GAMING INC | POLAR POWER vs. GameStop Corp | POLAR POWER vs. Boyd Gaming | POLAR POWER vs. Easy Software 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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