Correlation Between Xplora Technologies and Gaming Innovation
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies 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 Xplora Technologies and Gaming Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xplora Technologies As and Gaming Innovation Group, you can compare the effects of market volatilities on Xplora Technologies 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 Xplora Technologies with a short position of Gaming Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and Gaming Innovation.
Diversification Opportunities for Xplora Technologies and Gaming Innovation
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xplora and Gaming is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies 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 Xplora Technologies 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 Xplora Technologies 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 Xplora Technologies i.e., Xplora Technologies and Gaming Innovation go up and down completely randomly.
Pair Corralation between Xplora Technologies and Gaming Innovation
Assuming the 90 days trading horizon Xplora Technologies As is expected to generate 1.32 times more return on investment than Gaming Innovation. However, Xplora Technologies is 1.32 times more volatile than Gaming Innovation Group. It trades about 0.33 of its potential returns per unit of risk. Gaming Innovation Group is currently generating about -0.01 per unit of risk. If you would invest 2,470 in Xplora Technologies As on August 29, 2024 and sell it today you would earn a total of 490.00 from holding Xplora Technologies As or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xplora Technologies As vs. Gaming Innovation Group
Performance |
| Timeline |
| Xplora Technologies |
| Gaming Innovation |
Xplora Technologies and Gaming Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xplora Technologies and Gaming Innovation
The main advantage of trading using opposite Xplora Technologies and Gaming Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies 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.| Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Huddlestock Fintech As | Xplora Technologies vs. Elkem ASA | Xplora Technologies vs. Integrated Wind Solutions |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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