Correlation Between GameSquare Holdings and Gaxosai

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

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

Diversification Opportunities for GameSquare Holdings and Gaxosai

0.32

Correlation Coefficient

GameSquare Holdings  Gaxosai

Weak diversification

The 3 months correlation between GameSquare and Gaxosai is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai and GameSquare Holdings 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 GameSquare Holdings are associated (or correlated) with Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and Gaxosai go up and down completely randomly.

Pair Corralation between GameSquare Holdings and Gaxosai

Given the investment horizon of 90 days GameSquare Holdings is expected to generate 0.72 times more return on investment than Gaxosai. However, GameSquare Holdings is 1.4 times less risky than Gaxosai. It trades about -0.06 of its potential returns per unit of risk. Gaxosai is currently generating about -0.16 per unit of risk. If you would invest  82.00  in GameSquare Holdings on December 30, 2024 and sell it today you would lose (20.00) from holding GameSquare Holdings or give up 24.39% of portfolio value over 90 days.

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

GameSquare Holdings  vs.  Gaxosai

GameSquare Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days GameSquare Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Gaxosai

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaxosai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with GameSquare Holdings and Gaxosai

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

The idea behind GameSquare Holdings and Gaxosai 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.

Check out your portfolio center.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.