Correlation Between GAMING FAC and TYSON FOODS

Can any of the company-specific risk be diversified away by investing in both GAMING FAC and TYSON FOODS 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 GAMING FAC and TYSON FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GAMING FAC SA and TYSON FOODS A , you can compare the effects of market volatilities on GAMING FAC and TYSON FOODS 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 GAMING FAC with a short position of TYSON FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and TYSON FOODS.

Diversification Opportunities for GAMING FAC and TYSON FOODS

-0.54

Correlation Coefficient

GAMING FAC  TYSON FOODS

Excellent diversification

The 3 months correlation between GAMING and TYSON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and TYSON FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSON FOODS A and GAMING FAC 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 GAMING FAC SA are associated (or correlated) with TYSON FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TYSON FOODS A has no effect on the direction of GAMING FAC i.e., GAMING FAC and TYSON FOODS go up and down completely randomly.

Pair Corralation between GAMING FAC and TYSON FOODS

Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the TYSON FOODS. In addition to that, GAMING FAC is 2.02 times more volatile than TYSON FOODS A . It trades about -0.03 of its total potential returns per unit of risk. TYSON FOODS A is currently generating about 0.06 per unit of volatility. If you would invest  4,325  in TYSON FOODS A on October 5, 2024 and sell it today you would earn a total of  1,308  from holding TYSON FOODS A or generate 30.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.68%
Values	Daily Returns

GAMING FAC SA  vs.  TYSON FOODS A

GAMING FAC SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GAMING FAC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

TYSON FOODS A

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TYSON FOODS A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, TYSON FOODS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GAMING FAC and TYSON FOODS

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

The idea behind GAMING FAC SA and TYSON FOODS A 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.