Correlation Between Gamer Pakistan and Samfine Creation

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

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

Diversification Opportunities for Gamer Pakistan and Samfine Creation

-0.49

Correlation Coefficient

Gamer Pakistan  Samfine Creation

Very good diversification

The 3 months correlation between Gamer and Samfine is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gamer Pakistan Common and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings and Gamer Pakistan 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 Gamer Pakistan Common are associated (or correlated) with Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of Gamer Pakistan i.e., Gamer Pakistan and Samfine Creation go up and down completely randomly.

Pair Corralation between Gamer Pakistan and Samfine Creation

If you would invest  530.00  in Samfine Creation Holdings on September 16, 2024 and sell it today you would lose (413.00) from holding Samfine Creation Holdings or give up 77.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	2.27%
Values	Daily Returns

Gamer Pakistan Common  vs.  Samfine Creation Holdings

Gamer Pakistan Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gamer Pakistan Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Gamer Pakistan is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Samfine Creation Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samfine Creation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak technical indicators, Samfine Creation reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gamer Pakistan and Samfine Creation

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

The idea behind Gamer Pakistan Common and Samfine Creation 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.