Correlation Between Gaming Factory and All In

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

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

Diversification Opportunities for Gaming Factory and All In

-0.25

Correlation Coefficient

Gaming Factory  All In

Very good diversification

The 3 months correlation between Gaming and All is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and All In Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All In Games and Gaming Factory 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 Gaming Factory SA are associated (or correlated) with All In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All In Games has no effect on the direction of Gaming Factory i.e., Gaming Factory and All In go up and down completely randomly.

Pair Corralation between Gaming Factory and All In

Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 1.47 times more return on investment than All In. However, Gaming Factory is 1.47 times more volatile than All In Games. It trades about 0.22 of its potential returns per unit of risk. All In Games is currently generating about 0.02 per unit of risk. If you would invest  704.00  in Gaming Factory SA on December 30, 2024 and sell it today you would earn a total of  491.00  from holding Gaming Factory SA or generate 69.74% return on investment over 90 days.

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

Gaming Factory SA  vs.  All In Games

Gaming Factory SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gaming Factory SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Gaming Factory reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Gaming Factory and All In

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

The idea behind Gaming Factory SA and All In Games 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..