Correlation Between Gaming Innovation and Pf Bakkafrost

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

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

Diversification Opportunities for Gaming Innovation and Pf Bakkafrost

-0.02

Correlation Coefficient

Gaming Innovation  Pf Bakkafrost

Good diversification

The 3 months correlation between Gaming and BAKKA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Innovation Group and Pf Bakkafrost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pf Bakkafrost and Gaming Innovation 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 Innovation Group are associated (or correlated) with Pf Bakkafrost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pf Bakkafrost has no effect on the direction of Gaming Innovation i.e., Gaming Innovation and Pf Bakkafrost go up and down completely randomly.

Pair Corralation between Gaming Innovation and Pf Bakkafrost

Assuming the 90 days trading horizon Gaming Innovation Group is expected to under-perform the Pf Bakkafrost. In addition to that, Gaming Innovation is 1.52 times more volatile than Pf Bakkafrost. It trades about -0.17 of its total potential returns per unit of risk. Pf Bakkafrost is currently generating about 0.17 per unit of volatility. If you would invest  58,750  in Pf Bakkafrost on September 14, 2024 and sell it today you would earn a total of  10,550  from holding Pf Bakkafrost or generate 17.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.0%
Values	Daily Returns

Gaming Innovation Group  vs.  Pf Bakkafrost

Gaming Innovation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gaming Innovation Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pf Bakkafrost

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Pf Bakkafrost has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Pf Bakkafrost displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gaming Innovation and Pf Bakkafrost

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

The idea behind Gaming Innovation Group and Pf Bakkafrost 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.