Correlation Between ReposiTrak and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both ReposiTrak and GameStop Corp 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 ReposiTrak and GameStop Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReposiTrak and GameStop Corp, you can compare the effects of market volatilities on ReposiTrak and GameStop Corp 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 ReposiTrak with a short position of GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReposiTrak and GameStop Corp.
Diversification Opportunities for ReposiTrak and GameStop Corp
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ReposiTrak and GameStop is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding ReposiTrak and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp and ReposiTrak 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 ReposiTrak are associated (or correlated) with GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of ReposiTrak i.e., ReposiTrak and GameStop Corp go up and down completely randomly.
Pair Corralation between ReposiTrak and GameStop Corp
Given the investment horizon of 90 days ReposiTrak is expected to generate 0.63 times more return on investment than GameStop Corp. However, ReposiTrak is 1.59 times less risky than GameStop Corp. It trades about 0.27 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.05 per unit of risk. If you would invest 2,086 in ReposiTrak on September 15, 2024 and sell it today you would earn a total of 297.00 from holding ReposiTrak or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReposiTrak vs. GameStop Corp
Performance |
| Timeline |
| ReposiTrak |
| GameStop Corp |
ReposiTrak and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReposiTrak and GameStop Corp
The main advantage of trading using opposite ReposiTrak and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReposiTrak position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| ReposiTrak vs. GameStop Corp | ReposiTrak vs. Doubledown Interactive Co | ReposiTrak vs. Asure Software | ReposiTrak vs. Royalty Management Holding |
| GameStop Corp vs. Arhaus Inc | GameStop Corp vs. Floor Decor Holdings | GameStop Corp vs. Live Ventures | GameStop Corp vs. Macys Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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