Correlation Between Gamedust and 11 Bit

Can any of the company-specific risk be diversified away by investing in both Gamedust and 11 Bit 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 Gamedust and 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gamedust SA and 11 bit studios, you can compare the effects of market volatilities on Gamedust and 11 Bit 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 Gamedust with a short position of 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamedust and 11 Bit.

Diversification Opportunities for Gamedust and 11 Bit

0.31

Correlation Coefficient

Gamedust  11 Bit

Weak diversification

The 3 months correlation between Gamedust and 11B is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gamedust SA and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios and Gamedust 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 Gamedust SA are associated (or correlated) with 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of Gamedust i.e., Gamedust and 11 Bit go up and down completely randomly.

Pair Corralation between Gamedust and 11 Bit

Assuming the 90 days trading horizon Gamedust SA is expected to generate 0.72 times more return on investment than 11 Bit. However, Gamedust SA is 1.39 times less risky than 11 Bit. It trades about -0.13 of its potential returns per unit of risk. 11 bit studios is currently generating about -0.26 per unit of risk. If you would invest  13.00  in Gamedust SA on September 12, 2024 and sell it today you would lose (4.00) from holding Gamedust SA or give up 30.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	85.71%
Values	Daily Returns

Gamedust SA  vs.  11 bit studios

Gamedust SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gamedust SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

11 bit studios

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 11 bit studios has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Gamedust and 11 Bit

The main advantage of trading using opposite Gamedust and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamedust position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.

The idea behind Gamedust SA and 11 bit studios 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.