Correlation Between Intema Solutions and Gaming Realms

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

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

Diversification Opportunities for Intema Solutions and Gaming Realms

0.0

Correlation Coefficient

Intema Solutions  Gaming Realms

Pay attention - limited upside

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

Pair Corralation between Intema Solutions and Gaming Realms

If you would invest  0.22  in Intema Solutions on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Intema Solutions or generate 0.0% return on investment over 90 days.

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

Intema Solutions  vs.  Gaming Realms plc

Intema Solutions

Risk-Adjusted Performance

Very Weak

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

Gaming Realms plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaming Realms plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Intema Solutions and Gaming Realms

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

The idea behind Intema Solutions and Gaming Realms plc 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 CEOs Directory module to screen CEOs from public companies around the world.