Correlation Between GAMES OPERATORS and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both GAMES OPERATORS and GAMING FAC 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 GAMES OPERATORS and GAMING FAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMES OPERATORS SA and GAMING FAC SA, you can compare the effects of market volatilities on GAMES OPERATORS and GAMING FAC 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 GAMES OPERATORS with a short position of GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMES OPERATORS and GAMING FAC.
Diversification Opportunities for GAMES OPERATORS and GAMING FAC
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAMES and GAMING is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GAMES OPERATORS SA and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA and GAMES OPERATORS 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 GAMES OPERATORS SA are associated (or correlated) with GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of GAMES OPERATORS i.e., GAMES OPERATORS and GAMING FAC go up and down completely randomly.
Pair Corralation between GAMES OPERATORS and GAMING FAC
Assuming the 90 days horizon GAMES OPERATORS SA is expected to under-perform the GAMING FAC. But the stock apears to be less risky and, when comparing its historical volatility, GAMES OPERATORS SA is 1.66 times less risky than GAMING FAC. The stock trades about -0.01 of its potential returns per unit of risk. The GAMING FAC SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 141.00 in GAMING FAC SA on August 15, 2025 and sell it today you would earn a total of 41.00 from holding GAMING FAC SA or generate 29.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMES OPERATORS SA vs. GAMING FAC SA
Performance |
| Timeline |
| GAMES OPERATORS SA |
| GAMING FAC SA |
GAMES OPERATORS and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMES OPERATORS and GAMING FAC
The main advantage of trading using opposite GAMES OPERATORS and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMES OPERATORS position performs unexpectedly, GAMING FAC 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 FAC will offset losses from the drop in GAMING FAC's long position.| GAMES OPERATORS vs. Casio Computer CoLtd | GAMES OPERATORS vs. TELECOM ITALRISP ADR10 | GAMES OPERATORS vs. COMPUTER MODELLING | GAMES OPERATORS vs. Hellenic Telecommunications Organization |
| GAMING FAC vs. International Game Technology | GAMING FAC vs. Boyd Gaming | GAMING FAC vs. LG Display Co | GAMING FAC vs. GameStop Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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