Correlation Between Vodka Brands and Contagious Gaming

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vodka Brands and Contagious Gaming 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 Vodka Brands and Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vodka Brands Corp and Contagious Gaming, you can compare the effects of market volatilities on Vodka Brands and Contagious Gaming 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 Vodka Brands with a short position of Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodka Brands and Contagious Gaming.

Diversification Opportunities for Vodka Brands and Contagious Gaming

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Vodka and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vodka Brands Corp and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming and Vodka Brands 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 Vodka Brands Corp are associated (or correlated) with Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Vodka Brands i.e., Vodka Brands and Contagious Gaming go up and down completely randomly.

Pair Corralation between Vodka Brands and Contagious Gaming

Given the investment horizon of 90 days Vodka Brands Corp is expected to generate 1.67 times more return on investment than Contagious Gaming. However, Vodka Brands is 1.67 times more volatile than Contagious Gaming. It trades about 0.02 of its potential returns per unit of risk. Contagious Gaming is currently generating about -0.06 per unit of risk. If you would invest  193.00  in Vodka Brands Corp on September 30, 2024 and sell it today you would lose (86.00) from holding Vodka Brands Corp or give up 44.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Vodka Brands Corp  vs.  Contagious Gaming

 Performance 
       Timeline  
Vodka Brands Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vodka Brands Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Vodka Brands is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Contagious Gaming 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Contagious Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Contagious Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Vodka Brands and Contagious Gaming Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vodka Brands and Contagious Gaming

The main advantage of trading using opposite Vodka Brands and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodka Brands position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.
The idea behind Vodka Brands Corp and Contagious Gaming 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios