Correlation Between Minerals Technologies and Gamer Pakistan

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

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

Diversification Opportunities for Minerals Technologies and Gamer Pakistan

-0.41

Correlation Coefficient

Minerals Technologies  Gamer Pakistan

Very good diversification

The 3 months correlation between Minerals and Gamer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies and Gamer Pakistan Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamer Pakistan Common and Minerals Technologies 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 Minerals Technologies are associated (or correlated) with Gamer Pakistan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamer Pakistan Common has no effect on the direction of Minerals Technologies i.e., Minerals Technologies and Gamer Pakistan go up and down completely randomly.

Pair Corralation between Minerals Technologies and Gamer Pakistan

If you would invest  7,151  in Minerals Technologies on September 17, 2024 and sell it today you would earn a total of  760.00  from holding Minerals Technologies or generate 10.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.54%
Values	Daily Returns

Minerals Technologies  vs.  Gamer Pakistan Common

Minerals Technologies

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Minerals Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Minerals Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Minerals Technologies and Gamer Pakistan

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

The idea behind Minerals Technologies and Gamer Pakistan Common 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.