Correlation Between Skyward Specialty and Contagious Gaming

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Can any of the company-specific risk be diversified away by investing in both Skyward Specialty and Contagious Gaming 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 Skyward Specialty and Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyward Specialty Insurance and Contagious Gaming, you can compare the effects of market volatilities on Skyward Specialty and Contagious Gaming 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 Skyward Specialty with a short position of Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyward Specialty and Contagious Gaming.

Diversification Opportunities for Skyward Specialty and Contagious Gaming

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Skyward and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skyward Specialty Insurance and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming and Skyward Specialty 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 Skyward Specialty Insurance are associated (or correlated) with Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Skyward Specialty i.e., Skyward Specialty and Contagious Gaming go up and down completely randomly.

Pair Corralation between Skyward Specialty and Contagious Gaming

If you would invest  0.22  in Contagious Gaming on September 2, 2025 and sell it today you would earn a total of  0.00  from holding Contagious Gaming or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Skyward Specialty Insurance  vs.  Contagious Gaming

 Performance 
       Timeline  
Skyward Specialty 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Skyward Specialty Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Skyward Specialty is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Contagious Gaming 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Contagious Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Contagious Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Skyward Specialty and Contagious Gaming Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Skyward Specialty and Contagious Gaming

The main advantage of trading using opposite Skyward Specialty and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyward Specialty position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.
The idea behind Skyward Specialty Insurance and Contagious Gaming 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.
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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