Correlation Between GAMES OPERATORS and VIVENDI UNSPONARD

Can any of the company-specific risk be diversified away by investing in both GAMES OPERATORS and VIVENDI UNSPONARD 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 VIVENDI UNSPONARD 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 VIVENDI UNSPONARD EO, you can compare the effects of market volatilities on GAMES OPERATORS and VIVENDI UNSPONARD 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 VIVENDI UNSPONARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMES OPERATORS and VIVENDI UNSPONARD.

Diversification Opportunities for GAMES OPERATORS and VIVENDI UNSPONARD

0.04

Correlation Coefficient

GAMES OPERATORS  VIVENDI UNSPONARD

Significant diversification

The 3 months correlation between GAMES and VIVENDI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GAMES OPERATORS SA and VIVENDI UNSPONARD EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVENDI UNSPONARD 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 VIVENDI UNSPONARD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVENDI UNSPONARD has no effect on the direction of GAMES OPERATORS i.e., GAMES OPERATORS and VIVENDI UNSPONARD go up and down completely randomly.

Pair Corralation between GAMES OPERATORS and VIVENDI UNSPONARD

Assuming the 90 days horizon GAMES OPERATORS is expected to generate 1.59 times less return on investment than VIVENDI UNSPONARD. In addition to that, GAMES OPERATORS is 1.35 times more volatile than VIVENDI UNSPONARD EO. It trades about 0.08 of its total potential returns per unit of risk. VIVENDI UNSPONARD EO is currently generating about 0.17 per unit of volatility. If you would invest  234.00  in VIVENDI UNSPONARD EO on April 17, 2025 and sell it today you would earn a total of  46.00  from holding VIVENDI UNSPONARD EO or generate 19.66% 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.  VIVENDI UNSPONARD EO

GAMES OPERATORS SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GAMES OPERATORS SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GAMES OPERATORS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

VIVENDI UNSPONARD

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIVENDI UNSPONARD EO are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, VIVENDI UNSPONARD reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GAMES OPERATORS and VIVENDI UNSPONARD

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

The idea behind GAMES OPERATORS SA and VIVENDI UNSPONARD EO 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.