Correlation Between GameSquare Holdings and Swarmio Media

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

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

Diversification Opportunities for GameSquare Holdings and Swarmio Media

-0.5

Correlation Coefficient

GameSquare Holdings  Swarmio Media

Very good diversification

The 3 months correlation between GameSquare and Swarmio is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Swarmio Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swarmio Media Holdings and GameSquare Holdings 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 GameSquare Holdings are associated (or correlated) with Swarmio Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swarmio Media Holdings has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and Swarmio Media go up and down completely randomly.

Pair Corralation between GameSquare Holdings and Swarmio Media

If you would invest  95.00  in GameSquare Holdings on September 13, 2024 and sell it today you would earn a total of  3.00  from holding GameSquare Holdings or generate 3.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

GameSquare Holdings  vs.  Swarmio Media Holdings

GameSquare Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GameSquare Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent primary indicators, GameSquare Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Swarmio Media Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Swarmio Media Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Swarmio Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GameSquare Holdings and Swarmio Media

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

The idea behind GameSquare Holdings and Swarmio Media Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.