Correlation Between Dream Office and Gamehost

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

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

Diversification Opportunities for Dream Office and Gamehost

0.67

Correlation Coefficient

Dream Office  Gamehost

Poor diversification

The 3 months correlation between Dream and Gamehost is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dream Office Real and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and Dream Office 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 Dream Office Real are associated (or correlated) with Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Dream Office i.e., Dream Office and Gamehost go up and down completely randomly.

Pair Corralation between Dream Office and Gamehost

Assuming the 90 days trading horizon Dream Office is expected to generate 2.67 times less return on investment than Gamehost. In addition to that, Dream Office is 2.8 times more volatile than Gamehost. It trades about 0.06 of its total potential returns per unit of risk. Gamehost is currently generating about 0.46 per unit of volatility. If you would invest  969.00  in Gamehost on April 24, 2025 and sell it today you would earn a total of  270.00  from holding Gamehost or generate 27.86% return on investment over 90 days.

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

Dream Office Real  vs.  Gamehost

Dream Office Real

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dream Office Real are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Dream Office may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Gamehost

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Gamehost displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dream Office and Gamehost

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

The idea behind Dream Office Real and Gamehost 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.