Correlation Between UF Games and Gremi Media
Can any of the company-specific risk be diversified away by investing in both UF Games and Gremi Media 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 UF Games and Gremi Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UF Games SA and Gremi Media SA, you can compare the effects of market volatilities on UF Games and Gremi Media 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 UF Games with a short position of Gremi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of UF Games and Gremi Media.
Diversification Opportunities for UF Games and Gremi Media
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UFG and Gremi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding UF Games SA and Gremi Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gremi Media SA and UF Games 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 UF Games SA are associated (or correlated) with Gremi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gremi Media SA has no effect on the direction of UF Games i.e., UF Games and Gremi Media go up and down completely randomly.
Pair Corralation between UF Games and Gremi Media
Assuming the 90 days trading horizon UF Games SA is expected to under-perform the Gremi Media. But the stock apears to be less risky and, when comparing its historical volatility, UF Games SA is 1.2 times less risky than Gremi Media. The stock trades about -0.43 of its potential returns per unit of risk. The Gremi Media SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,300 in Gremi Media SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Gremi Media SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 37.5% |
| Values | Daily Returns |
UF Games SA vs. Gremi Media SA
Performance |
| Timeline |
| UF Games SA |
| Gremi Media SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UF Games and Gremi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UF Games and Gremi Media
The main advantage of trading using opposite UF Games and Gremi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UF Games position performs unexpectedly, Gremi Media 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 Gremi Media will offset losses from the drop in Gremi Media's long position.| UF Games vs. Banco Santander SA | UF Games vs. UniCredit SpA | UF Games vs. CEZ as | UF Games vs. Polski Koncern Naftowy |
| Gremi Media vs. BNP Paribas Bank | Gremi Media vs. Road Studio SA | Gremi Media vs. mBank SA | Gremi Media vs. SOFTWARE MANSION SPOLKA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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