Correlation Between ZINC MEDIA and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both ZINC MEDIA and GAMESTOP 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 ZINC MEDIA and GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZINC MEDIA GR and GAMESTOP, you can compare the effects of market volatilities on ZINC MEDIA and GAMESTOP 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 ZINC MEDIA with a short position of GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINC MEDIA and GAMESTOP.
Diversification Opportunities for ZINC MEDIA and GAMESTOP
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZINC and GAMESTOP is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ZINC MEDIA GR and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP and ZINC MEDIA 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 ZINC MEDIA GR are associated (or correlated) with GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of ZINC MEDIA i.e., ZINC MEDIA and GAMESTOP go up and down completely randomly.
Pair Corralation between ZINC MEDIA and GAMESTOP
Assuming the 90 days trading horizon ZINC MEDIA GR is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, ZINC MEDIA GR is 1.91 times less risky than GAMESTOP. The stock trades about -0.17 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2,080 in GAMESTOP on August 29, 2024 and sell it today you would earn a total of 791.00 from holding GAMESTOP or generate 38.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZINC MEDIA GR vs. GAMESTOP
Performance |
| Timeline |
| ZINC MEDIA GR |
| GAMESTOP |
ZINC MEDIA and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINC MEDIA and GAMESTOP
The main advantage of trading using opposite ZINC MEDIA and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINC MEDIA position performs unexpectedly, GAMESTOP 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 will offset losses from the drop in GAMESTOP's long position.The idea behind ZINC MEDIA GR and GAMESTOP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GAMESTOP vs. Dave Busters Entertainment | GAMESTOP vs. ZINC MEDIA GR | GAMESTOP vs. BW OFFSHORE LTD | GAMESTOP vs. Playtech plc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |