Correlation Between All In and Ultimate Games

Can any of the company-specific risk be diversified away by investing in both All In and Ultimate Games 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 All In and Ultimate Games into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between All In Games and Ultimate Games SA, you can compare the effects of market volatilities on All In and Ultimate Games 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 All In with a short position of Ultimate Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of All In and Ultimate Games.

Diversification Opportunities for All In and Ultimate Games

-0.49

Correlation Coefficient

All In  Ultimate Games

Very good diversification

The 3 months correlation between All and Ultimate is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding All In Games and Ultimate Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimate Games SA and All In 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 All In Games are associated (or correlated) with Ultimate Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimate Games SA has no effect on the direction of All In i.e., All In and Ultimate Games go up and down completely randomly.

Pair Corralation between All In and Ultimate Games

Assuming the 90 days trading horizon All In is expected to generate 3.72 times less return on investment than Ultimate Games. But when comparing it to its historical volatility, All In Games is 1.18 times less risky than Ultimate Games. It trades about 0.02 of its potential returns per unit of risk. Ultimate Games SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  798.00  in Ultimate Games SA on December 30, 2024 and sell it today you would earn a total of  108.00  from holding Ultimate Games SA or generate 13.53% return on investment over 90 days.

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

All In Games  vs.  Ultimate Games SA

All In Games

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in All In Games are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, All In is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Ultimate Games SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ultimate Games SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Ultimate Games reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with All In and Ultimate Games

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

The idea behind All In Games and Ultimate Games SA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.