Correlation Between Enter Air and Gamedust

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

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

Diversification Opportunities for Enter Air and Gamedust

-0.69

Correlation Coefficient

Enter Air  Gamedust

Excellent diversification

The 3 months correlation between Enter and Gamedust is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Gamedust SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamedust SA and Enter Air 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 Enter Air SA are associated (or correlated) with Gamedust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamedust SA has no effect on the direction of Enter Air i.e., Enter Air and Gamedust go up and down completely randomly.

Pair Corralation between Enter Air and Gamedust

Assuming the 90 days trading horizon Enter Air SA is expected to generate 0.27 times more return on investment than Gamedust. However, Enter Air SA is 3.7 times less risky than Gamedust. It trades about 0.15 of its potential returns per unit of risk. Gamedust SA is currently generating about -0.15 per unit of risk. If you would invest  5,500  in Enter Air SA on December 23, 2024 and sell it today you would earn a total of  710.00  from holding Enter Air SA or generate 12.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	71.67%
Values	Daily Returns

Enter Air SA  vs.  Gamedust SA

Enter Air SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Enter Air SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Enter Air reported solid returns over the last few months and may actually be approaching a breakup point.

Gamedust SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gamedust SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Enter Air and Gamedust

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

The idea behind Enter Air SA and Gamedust 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.