Correlation Between FUTURE GAMING and Capgemini

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

By analyzing existing cross correlation between FUTURE GAMING GRP and Capgemini SE, you can compare the effects of market volatilities on FUTURE GAMING and Capgemini 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 FUTURE GAMING with a short position of Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and Capgemini.

Diversification Opportunities for FUTURE GAMING and Capgemini

0.14

Correlation Coefficient

FUTURE GAMING  Capgemini

Average diversification

The 3 months correlation between FUTURE and Capgemini is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE and FUTURE 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 FUTURE GAMING GRP are associated (or correlated) with Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and Capgemini go up and down completely randomly.

Pair Corralation between FUTURE GAMING and Capgemini

Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to generate 1.92 times more return on investment than Capgemini. However, FUTURE GAMING is 1.92 times more volatile than Capgemini SE. It trades about 0.05 of its potential returns per unit of risk. Capgemini SE is currently generating about 0.05 per unit of risk. If you would invest  44.00  in FUTURE GAMING GRP on April 24, 2025 and sell it today you would earn a total of  4.00  from holding FUTURE GAMING GRP or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

FUTURE GAMING GRP  vs.  Capgemini SE

FUTURE GAMING GRP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FUTURE GAMING GRP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FUTURE GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Capgemini SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Capgemini SE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Capgemini may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with FUTURE GAMING and Capgemini

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

The idea behind FUTURE GAMING GRP and Capgemini SE 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.