Correlation Between GAMES OPERATORS and Advanced Medical

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

By analyzing existing cross correlation between GAMES OPERATORS SA and Advanced Medical Solutions, you can compare the effects of market volatilities on GAMES OPERATORS and Advanced Medical 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 GAMES OPERATORS with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMES OPERATORS and Advanced Medical.

Diversification Opportunities for GAMES OPERATORS and Advanced Medical

0.02

Correlation Coefficient

GAMES OPERATORS  Advanced Medical

Significant diversification

The 3 months correlation between GAMES and Advanced is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GAMES OPERATORS SA and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and GAMES OPERATORS 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 GAMES OPERATORS SA are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of GAMES OPERATORS i.e., GAMES OPERATORS and Advanced Medical go up and down completely randomly.

Pair Corralation between GAMES OPERATORS and Advanced Medical

Assuming the 90 days horizon GAMES OPERATORS SA is expected to generate 1.32 times more return on investment than Advanced Medical. However, GAMES OPERATORS is 1.32 times more volatile than Advanced Medical Solutions. It trades about 0.2 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about -0.05 per unit of risk. If you would invest  355.00  in GAMES OPERATORS SA on April 22, 2025 and sell it today you would earn a total of  40.00  from holding GAMES OPERATORS SA or generate 11.27% return on investment over 90 days.

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

GAMES OPERATORS SA  vs.  Advanced Medical Solutions

GAMES OPERATORS SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GAMES OPERATORS SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, GAMES OPERATORS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Advanced Medical Sol

Risk-Adjusted Performance

OK

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

Pair Trading with GAMES OPERATORS and Advanced Medical

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

The idea behind GAMES OPERATORS SA and Advanced Medical Solutions 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.