Correlation Between Gaming Factory and HM Inwest
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and HM Inwest 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 HM Inwest 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 HM Inwest SA, you can compare the effects of market volatilities on Gaming Factory and HM Inwest 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 HM Inwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and HM Inwest.
Diversification Opportunities for Gaming Factory and HM Inwest
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gaming and HMI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and HM Inwest SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HM Inwest SA 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 HM Inwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HM Inwest SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and HM Inwest go up and down completely randomly.
Pair Corralation between Gaming Factory and HM Inwest
Assuming the 90 days trading horizon Gaming Factory SA is expected to generate 0.96 times more return on investment than HM Inwest. However, Gaming Factory SA is 1.04 times less risky than HM Inwest. It trades about 0.22 of its potential returns per unit of risk. HM Inwest SA is currently generating about 0.04 per unit of risk. If you would invest 704.00 in Gaming Factory SA on December 29, 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 Together |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Gaming Factory SA vs. HM Inwest SA
Performance |
Timeline |
Gaming Factory SA |
HM Inwest SA |
Gaming Factory and HM Inwest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaming Factory and HM Inwest
The main advantage of trading using opposite Gaming Factory and HM Inwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, HM Inwest 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 HM Inwest will offset losses from the drop in HM Inwest's long position.Gaming Factory vs. Datawalk SA | Gaming Factory vs. Santander Bank Polska | Gaming Factory vs. Quantum Software SA | Gaming Factory vs. SOFTWARE MANSION SPOLKA |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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