Correlation Between Gaming Factory and Volkswagen

Can any of the company-specific risk be diversified away by investing in both Gaming Factory and Volkswagen 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 Volkswagen 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 Volkswagen AG Non Vtg, you can compare the effects of market volatilities on Gaming Factory and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and Volkswagen.

Diversification Opportunities for Gaming Factory and Volkswagen

0.0

Correlation Coefficient

Gaming Factory  Volkswagen

Pay attention - limited upside

The 3 months correlation between Gaming and Volkswagen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and Volkswagen AG Non Vtg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG Non 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG Non has no effect on the direction of Gaming Factory i.e., Gaming Factory and Volkswagen go up and down completely randomly.

Pair Corralation between Gaming Factory and Volkswagen

If you would invest  0.00  in Volkswagen AG Non Vtg on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Volkswagen AG Non Vtg or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Gaming Factory SA  vs.  Volkswagen AG Non Vtg

Gaming Factory SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gaming Factory SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Volkswagen AG Non

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Volkswagen AG Non Vtg has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Volkswagen is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Gaming Factory and Volkswagen

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

The idea behind Gaming Factory SA and Volkswagen AG Non Vtg 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.