Correlation Between Gamehost and Veren

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

By analyzing existing cross correlation between Gamehost and Veren Inc, you can compare the effects of market volatilities on Gamehost and Veren 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 Veren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamehost and Veren.

Diversification Opportunities for Gamehost and Veren

0.33

Correlation Coefficient

Gamehost  Veren

Weak diversification

The 3 months correlation between Gamehost and Veren is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and Veren Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veren Inc 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 Veren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veren Inc has no effect on the direction of Gamehost i.e., Gamehost and Veren go up and down completely randomly.

Pair Corralation between Gamehost and Veren

Assuming the 90 days horizon Gamehost is expected to under-perform the Veren. But the pink sheet apears to be less risky and, when comparing its historical volatility, Gamehost is 1.58 times less risky than Veren. The pink sheet trades about -0.19 of its potential returns per unit of risk. The Veren Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  491.00  in Veren Inc on October 10, 2024 and sell it today you would earn a total of  53.00  from holding Veren Inc or generate 10.79% return on investment over 90 days.

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

Gamehost  vs.  Veren Inc

Gamehost

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gamehost has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Gamehost is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Veren Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Veren Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Gamehost and Veren

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

The idea behind Gamehost and Veren Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.