Correlation Between AFRICAN MEDIA and GAMESTOP

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

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

Diversification Opportunities for AFRICAN MEDIA and GAMESTOP

0.0

Correlation Coefficient

AFRICAN MEDIA  GAMESTOP

Pay attention - limited upside

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

Pair Corralation between AFRICAN MEDIA and GAMESTOP

If you would invest  131.00  in AFRICAN MEDIA ENT on March 24, 2025 and sell it today you would earn a total of  0.00  from holding AFRICAN MEDIA ENT or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

AFRICAN MEDIA ENT  vs.  GAMESTOP

AFRICAN MEDIA ENT

Risk-Adjusted Performance

Very Weak

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

GAMESTOP

Risk-Adjusted Performance

Very Weak

Over the last 90 days GAMESTOP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AFRICAN MEDIA and GAMESTOP

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

The idea behind AFRICAN MEDIA ENT and GAMESTOP 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.