Correlation Between Forgame Holdings and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both Forgame Holdings and GAMES OPERATORS 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 Forgame Holdings and GAMES OPERATORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forgame Holdings and GAMES OPERATORS SA, you can compare the effects of market volatilities on Forgame Holdings and GAMES OPERATORS 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 Forgame Holdings with a short position of GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forgame Holdings and GAMES OPERATORS.
Diversification Opportunities for Forgame Holdings and GAMES OPERATORS
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Forgame and GAMES is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Forgame Holdings and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA and Forgame Holdings 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 Forgame Holdings are associated (or correlated) with GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Forgame Holdings i.e., Forgame Holdings and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between Forgame Holdings and GAMES OPERATORS
Assuming the 90 days trading horizon Forgame Holdings is expected to under-perform the GAMES OPERATORS. In addition to that, Forgame Holdings is 1.11 times more volatile than GAMES OPERATORS SA. It trades about -0.01 of its total potential returns per unit of risk. GAMES OPERATORS SA is currently generating about -0.01 per unit of volatility. If you would invest 327.00 in GAMES OPERATORS SA on August 18, 2025 and sell it today you would lose (10.00) from holding GAMES OPERATORS SA or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forgame Holdings vs. GAMES OPERATORS SA
Performance |
| Timeline |
| Forgame Holdings |
| GAMES OPERATORS SA |
Forgame Holdings and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forgame Holdings and GAMES OPERATORS
The main advantage of trading using opposite Forgame Holdings and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forgame Holdings position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.| Forgame Holdings vs. Apple Inc | Forgame Holdings vs. Apple Inc | Forgame Holdings vs. Apple Inc | Forgame Holdings vs. Apple Inc |
| GAMES OPERATORS vs. AMAG Austria Metall | GAMES OPERATORS vs. Rogers Communications | GAMES OPERATORS vs. Transport International Holdings | GAMES OPERATORS vs. Hemisphere Energy 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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