Correlation Between Moberg Pharma and Gaming Corps

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

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

Diversification Opportunities for Moberg Pharma and Gaming Corps

-0.53

Correlation Coefficient

Moberg Pharma  Gaming Corps

Excellent diversification

The 3 months correlation between Moberg and Gaming is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Moberg Pharma AB and Gaming Corps AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Corps AB and Moberg Pharma 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 Moberg Pharma AB are associated (or correlated) with Gaming Corps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Corps AB has no effect on the direction of Moberg Pharma i.e., Moberg Pharma and Gaming Corps go up and down completely randomly.

Pair Corralation between Moberg Pharma and Gaming Corps

Assuming the 90 days trading horizon Moberg Pharma AB is expected to under-perform the Gaming Corps. But the stock apears to be less risky and, when comparing its historical volatility, Moberg Pharma AB is 2.48 times less risky than Gaming Corps. The stock trades about -0.1 of its potential returns per unit of risk. The Gaming Corps AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  59.00  in Gaming Corps AB on December 30, 2024 and sell it today you would earn a total of  43.00  from holding Gaming Corps AB or generate 72.88% return on investment over 90 days.

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

Moberg Pharma AB  vs.  Gaming Corps AB

Moberg Pharma AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moberg Pharma AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Gaming Corps AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gaming Corps AB are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Gaming Corps unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moberg Pharma and Gaming Corps

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

The idea behind Moberg Pharma AB and Gaming Corps AB 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.