Correlation Between United Homes and Gamehost

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

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

Diversification Opportunities for United Homes and Gamehost

0.09

Correlation Coefficient

United Homes  Gamehost

Significant diversification

The 3 months correlation between United and Gamehost is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding United Homes Group and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and United Homes 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 United Homes Group 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 United Homes i.e., United Homes and Gamehost go up and down completely randomly.

Pair Corralation between United Homes and Gamehost

Considering the 90-day investment horizon United Homes Group is expected to under-perform the Gamehost. In addition to that, United Homes is 3.54 times more volatile than Gamehost. It trades about -0.05 of its total potential returns per unit of risk. Gamehost is currently generating about 0.17 per unit of volatility. If you would invest  693.00  in Gamehost on December 21, 2024 and sell it today you would earn a total of  80.00  from holding Gamehost or generate 11.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.92%
Values	Daily Returns

United Homes Group  vs.  Gamehost

United Homes Group

Risk-Adjusted Performance

Very Weak

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

Gamehost

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Gamehost reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with United Homes and Gamehost

The main advantage of trading using opposite United Homes and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Homes 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 United Homes Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.