Correlation Between BBB Foods and Gamer Pakistan
Can any of the company-specific risk be diversified away by investing in both BBB Foods and Gamer Pakistan 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 BBB Foods and Gamer Pakistan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBB Foods and Gamer Pakistan Common, you can compare the effects of market volatilities on BBB Foods and Gamer Pakistan 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 BBB Foods with a short position of Gamer Pakistan. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Gamer Pakistan.
Diversification Opportunities for BBB Foods and Gamer Pakistan
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BBB and Gamer is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and Gamer Pakistan Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamer Pakistan Common and BBB Foods 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 BBB Foods are associated (or correlated) with Gamer Pakistan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamer Pakistan Common has no effect on the direction of BBB Foods i.e., BBB Foods and Gamer Pakistan go up and down completely randomly.
Pair Corralation between BBB Foods and Gamer Pakistan
If you would invest 1.60 in Gamer Pakistan Common on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Gamer Pakistan Common or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
BBB Foods vs. Gamer Pakistan Common
Performance |
| Timeline |
| BBB Foods |
| Gamer Pakistan Common |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BBB Foods and Gamer Pakistan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and Gamer Pakistan
The main advantage of trading using opposite BBB Foods and Gamer Pakistan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods position performs unexpectedly, Gamer Pakistan 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 Gamer Pakistan will offset losses from the drop in Gamer Pakistan's long position.| BBB Foods vs. Innovative Food Hldg | BBB Foods vs. Calavo Growers | BBB Foods vs. The Chefs Warehouse | BBB Foods vs. AMCON Distributing |
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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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