Correlation Between Sciplay Corp and GameSquare Holdings

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

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

Diversification Opportunities for Sciplay Corp and GameSquare Holdings

-0.38

Correlation Coefficient

Sciplay Corp  GameSquare Holdings

Very good diversification

The 3 months correlation between Sciplay and GameSquare is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sciplay Corp and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings and Sciplay Corp 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 Sciplay Corp are associated (or correlated) with GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of Sciplay Corp i.e., Sciplay Corp and GameSquare Holdings go up and down completely randomly.

Pair Corralation between Sciplay Corp and GameSquare Holdings

If you would invest  93.00  in GameSquare Holdings on September 4, 2024 and sell it today you would lose (8.00) from holding GameSquare Holdings or give up 8.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Sciplay Corp  vs.  GameSquare Holdings

Sciplay Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

GameSquare Holdings

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days GameSquare Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, GameSquare Holdings is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Sciplay Corp and GameSquare Holdings

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

The idea behind Sciplay Corp and GameSquare 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.