Correlation Between MakeMyTrip and Gamehost

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

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

Diversification Opportunities for MakeMyTrip and Gamehost

0.09

Correlation Coefficient

MakeMyTrip  Gamehost

Significant diversification

The 3 months correlation between MakeMyTrip and Gamehost is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MakeMyTrip Limited and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and MakeMyTrip 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 MakeMyTrip Limited are associated (or correlated) with Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of MakeMyTrip i.e., MakeMyTrip and Gamehost go up and down completely randomly.

Pair Corralation between MakeMyTrip and Gamehost

Given the investment horizon of 90 days MakeMyTrip Limited is expected to under-perform the Gamehost. In addition to that, MakeMyTrip is 2.67 times more volatile than Gamehost. It trades about -0.05 of its total potential returns per unit of risk. Gamehost is currently generating about 0.14 per unit of volatility. If you would invest  708.00  in Gamehost on December 24, 2024 and sell it today you would earn a total of  65.00  from holding Gamehost or generate 9.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

MakeMyTrip Limited  vs.  Gamehost

MakeMyTrip Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days MakeMyTrip Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Gamehost

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Gamehost may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with MakeMyTrip and Gamehost

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

The idea behind MakeMyTrip Limited and Gamehost 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.