Correlation Between Gaming Realms and Intema Solutions

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

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

Diversification Opportunities for Gaming Realms and Intema Solutions

0.0

Correlation Coefficient

Gaming Realms  Intema Solutions

Pay attention - limited upside

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

Pair Corralation between Gaming Realms and Intema Solutions

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

Gaming Realms plc  vs.  Intema Solutions

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 weak 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.

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.

Pair Trading with Gaming Realms and Intema Solutions

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

The idea behind Gaming Realms plc and Intema Solutions 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.