Correlation Between Sciplay Corp and GDEV

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

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

Diversification Opportunities for Sciplay Corp and GDEV

0.45

Correlation Coefficient

Sciplay Corp  GDEV

Very weak diversification

The 3 months correlation between Sciplay and GDEV is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sciplay Corp and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc and Sciplay Corp 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 Sciplay Corp are associated (or correlated) with GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of Sciplay Corp i.e., Sciplay Corp and GDEV go up and down completely randomly.

Pair Corralation between Sciplay Corp and GDEV

If you would invest  2,202  in GDEV Inc on September 4, 2024 and sell it today you would earn a total of  98.00  from holding GDEV Inc or generate 4.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Sciplay Corp  vs.  GDEV Inc

Sciplay Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sciplay Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Sciplay Corp is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

GDEV Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GDEV Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting technical and fundamental indicators, GDEV showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sciplay Corp and GDEV

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

The idea behind Sciplay Corp and GDEV Inc 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.