Correlation Between G5 Entertainment and TR Property

Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and TR Property 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 G5 Entertainment and TR Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between G5 Entertainment AB and TR Property Investment, you can compare the effects of market volatilities on G5 Entertainment and TR Property 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 G5 Entertainment with a short position of TR Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and TR Property.

Diversification Opportunities for G5 Entertainment and TR Property

-0.08

Correlation Coefficient

G5 Entertainment  TR Property

Good diversification

The 3 months correlation between 0QUS and TRY is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and TR Property Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TR Property Investment and G5 Entertainment 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 G5 Entertainment AB are associated (or correlated) with TR Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TR Property Investment has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and TR Property go up and down completely randomly.

Pair Corralation between G5 Entertainment and TR Property

Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 2.05 times more return on investment than TR Property. However, G5 Entertainment is 2.05 times more volatile than TR Property Investment. It trades about 0.1 of its potential returns per unit of risk. TR Property Investment is currently generating about -0.04 per unit of risk. If you would invest  10,940  in G5 Entertainment AB on December 30, 2024 and sell it today you would earn a total of  1,660  from holding G5 Entertainment AB or generate 15.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

G5 Entertainment AB  vs.  TR Property Investment

G5 Entertainment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in G5 Entertainment AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, G5 Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

TR Property Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days TR Property Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, TR Property is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with G5 Entertainment and TR Property

The main advantage of trading using opposite G5 Entertainment and TR Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, TR Property 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 TR Property will offset losses from the drop in TR Property's long position.

The idea behind G5 Entertainment AB and TR Property Investment 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..