Correlation Between Ibase Gaming and Sunfar Computer

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

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

Diversification Opportunities for Ibase Gaming and Sunfar Computer

0.71

Correlation Coefficient

Ibase Gaming  Sunfar Computer

Poor diversification

The 3 months correlation between Ibase and Sunfar is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ibase Gaming and Sunfar Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunfar Computer and Ibase 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 Ibase Gaming are associated (or correlated) with Sunfar Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunfar Computer has no effect on the direction of Ibase Gaming i.e., Ibase Gaming and Sunfar Computer go up and down completely randomly.

Pair Corralation between Ibase Gaming and Sunfar Computer

Assuming the 90 days trading horizon Ibase Gaming is expected to generate 3.59 times more return on investment than Sunfar Computer. However, Ibase Gaming is 3.59 times more volatile than Sunfar Computer Co. It trades about 0.09 of its potential returns per unit of risk. Sunfar Computer Co is currently generating about 0.03 per unit of risk. If you would invest  2,290  in Ibase Gaming on April 25, 2025 and sell it today you would earn a total of  475.00  from holding Ibase Gaming or generate 20.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ibase Gaming  vs.  Sunfar Computer Co

Ibase Gaming

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ibase Gaming are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ibase Gaming showed solid returns over the last few months and may actually be approaching a breakup point.

Sunfar Computer

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sunfar Computer Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Sunfar Computer is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ibase Gaming and Sunfar Computer

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

The idea behind Ibase Gaming and Sunfar Computer Co 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.