Correlation Between Gaming Factory and CD PROJEKT
Can any of the company-specific risk be diversified away by investing in both Gaming Factory and CD PROJEKT 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 Factory and CD PROJEKT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Factory SA and CD PROJEKT SA, you can compare the effects of market volatilities on Gaming Factory and CD PROJEKT 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 Factory with a short position of CD PROJEKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Factory and CD PROJEKT.
Diversification Opportunities for Gaming Factory and CD PROJEKT
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaming and CDR is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and CD PROJEKT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD PROJEKT SA and Gaming Factory 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 Factory SA are associated (or correlated) with CD PROJEKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD PROJEKT SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and CD PROJEKT go up and down completely randomly.
Pair Corralation between Gaming Factory and CD PROJEKT
Assuming the 90 days trading horizon Gaming Factory SA is expected to under-perform the CD PROJEKT. In addition to that, Gaming Factory is 1.62 times more volatile than CD PROJEKT SA. It trades about -0.08 of its total potential returns per unit of risk. CD PROJEKT SA is currently generating about 0.08 per unit of volatility. If you would invest 17,415 in CD PROJEKT SA on September 30, 2024 and sell it today you would earn a total of 1,640 from holding CD PROJEKT SA or generate 9.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gaming Factory SA vs. CD PROJEKT SA
Performance |
Timeline |
Gaming Factory SA |
CD PROJEKT SA |
Gaming Factory and CD PROJEKT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaming Factory and CD PROJEKT
The main advantage of trading using opposite Gaming Factory and CD PROJEKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Factory position performs unexpectedly, CD PROJEKT 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 CD PROJEKT will offset losses from the drop in CD PROJEKT's long position.Gaming Factory vs. CD PROJEKT SA | Gaming Factory vs. PLAYWAY SA | Gaming Factory vs. 11 bit studios | Gaming Factory vs. TEN SQUARE GAMES |
CD PROJEKT vs. Banco Santander SA | CD PROJEKT vs. Pepco Group BV | CD PROJEKT vs. Powszechny Zaklad Ubezpieczen | CD PROJEKT vs. Dino Polska SA |
Check out your portfolio center.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.
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