Correlation Between SoftOx Solutions and Gaming Innovation
Can any of the company-specific risk be diversified away by investing in both SoftOx Solutions and Gaming Innovation 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 SoftOx Solutions and Gaming Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftOx Solutions AS and Gaming Innovation Group, you can compare the effects of market volatilities on SoftOx Solutions and Gaming Innovation 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 SoftOx Solutions with a short position of Gaming Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftOx Solutions and Gaming Innovation.
Diversification Opportunities for SoftOx Solutions and Gaming Innovation
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SoftOx and Gaming is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SoftOx Solutions AS and Gaming Innovation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Innovation and SoftOx Solutions 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 SoftOx Solutions AS are associated (or correlated) with Gaming Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Innovation has no effect on the direction of SoftOx Solutions i.e., SoftOx Solutions and Gaming Innovation go up and down completely randomly.
Pair Corralation between SoftOx Solutions and Gaming Innovation
Assuming the 90 days trading horizon SoftOx Solutions AS is expected to under-perform the Gaming Innovation. In addition to that, SoftOx Solutions is 3.57 times more volatile than Gaming Innovation Group. It trades about -0.15 of its total potential returns per unit of risk. Gaming Innovation Group is currently generating about 0.02 per unit of volatility. If you would invest 2,460 in Gaming Innovation Group on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Gaming Innovation Group or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
SoftOx Solutions AS vs. Gaming Innovation Group
Performance |
| Timeline |
| SoftOx Solutions |
| Gaming Innovation |
SoftOx Solutions and Gaming Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftOx Solutions and Gaming Innovation
The main advantage of trading using opposite SoftOx Solutions and Gaming Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftOx Solutions position performs unexpectedly, Gaming Innovation 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 Gaming Innovation will offset losses from the drop in Gaming Innovation's long position.| SoftOx Solutions vs. Gaming Innovation Group | SoftOx Solutions vs. Techstep ASA | SoftOx Solutions vs. Romsdal Sparebank | SoftOx Solutions vs. Nordic Technology Group |
| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron ASA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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