Correlation Between So Young and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both So Young and GameSquare Holdings 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 So Young and GameSquare Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and GameSquare Holdings, you can compare the effects of market volatilities on So Young and GameSquare Holdings 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 So Young with a short position of GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and GameSquare Holdings.
Diversification Opportunities for So Young and GameSquare Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between So Young and GameSquare is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings and So Young 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 So Young International are associated (or correlated) with GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of So Young i.e., So Young and GameSquare Holdings go up and down completely randomly.
Pair Corralation between So Young and GameSquare Holdings
Allowing for the 90-day total investment horizon So Young International is expected to under-perform the GameSquare Holdings. But the stock apears to be less risky and, when comparing its historical volatility, So Young International is 1.0 times less risky than GameSquare Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The GameSquare Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 81.00 in GameSquare Holdings on August 31, 2024 and sell it today you would earn a total of 10.00 from holding GameSquare Holdings or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. GameSquare Holdings
Performance |
| Timeline |
| So Young International |
| GameSquare Holdings |
So Young and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and GameSquare Holdings
The main advantage of trading using opposite So Young and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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