Correlation Between Gamehost and MakeMyTrip

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

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

Diversification Opportunities for Gamehost and MakeMyTrip

0.09

Correlation Coefficient

Gamehost  MakeMyTrip

Significant diversification

The 3 months correlation between Gamehost and MakeMyTrip is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and MakeMyTrip Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MakeMyTrip Limited and Gamehost 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 Gamehost are associated (or correlated) with MakeMyTrip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MakeMyTrip Limited has no effect on the direction of Gamehost i.e., Gamehost and MakeMyTrip go up and down completely randomly.

Pair Corralation between Gamehost and MakeMyTrip

Assuming the 90 days horizon Gamehost is expected to generate 0.37 times more return on investment than MakeMyTrip. However, Gamehost is 2.67 times less risky than MakeMyTrip. It trades about 0.14 of its potential returns per unit of risk. MakeMyTrip Limited is currently generating about -0.05 per unit of risk. If you would invest  708.00  in Gamehost on December 24, 2024 and sell it today you would earn a total of  65.00  from holding Gamehost or generate 9.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Gamehost  vs.  MakeMyTrip Limited

Gamehost

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Gamehost may actually be approaching a critical reversion point that can send shares even higher in April 2025.

MakeMyTrip Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days MakeMyTrip Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Gamehost and MakeMyTrip

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

The idea behind Gamehost and MakeMyTrip Limited 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.