Correlation Between Contagious Gaming and Golden Matrix

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

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

Diversification Opportunities for Contagious Gaming and Golden Matrix

0.0

Correlation Coefficient

Contagious Gaming  Golden Matrix

Pay attention - limited upside

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

Pair Corralation between Contagious Gaming and Golden Matrix

Assuming the 90 days horizon Contagious Gaming is expected to generate 4.87 times less return on investment than Golden Matrix. In addition to that, Contagious Gaming is 1.26 times more volatile than Golden Matrix Group. It trades about 0.0 of its total potential returns per unit of risk. Golden Matrix Group is currently generating about 0.02 per unit of volatility. If you would invest  236.00  in Golden Matrix Group on September 14, 2024 and sell it today you would lose (31.00) from holding Golden Matrix Group or give up 13.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Contagious Gaming  vs.  Golden Matrix Group

Contagious Gaming

Risk-Adjusted Performance

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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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Golden Matrix is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Contagious Gaming and Golden Matrix

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

The idea behind Contagious Gaming and Golden Matrix Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..