Correlation Between Gamehost and Apple CDR

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

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

Diversification Opportunities for Gamehost and Apple CDR

0.2

Correlation Coefficient

Gamehost  Apple CDR

Modest diversification

The 3 months correlation between Gamehost and Apple is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and Apple CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple CDR and Gamehost 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 Gamehost are associated (or correlated) with Apple CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple CDR has no effect on the direction of Gamehost i.e., Gamehost and Apple CDR go up and down completely randomly.

Pair Corralation between Gamehost and Apple CDR

Assuming the 90 days horizon Gamehost is expected to generate 0.71 times more return on investment than Apple CDR. However, Gamehost is 1.4 times less risky than Apple CDR. It trades about 0.62 of its potential returns per unit of risk. Apple CDR is currently generating about -0.01 per unit of risk. If you would invest  991.00  in Gamehost on April 10, 2025 and sell it today you would earn a total of  252.00  from holding Gamehost or generate 25.43% return on investment over 90 days.

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

Gamehost  vs.  Apple CDR

Gamehost

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 38 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Gamehost displayed solid returns over the last few months and may actually be approaching a breakup point.

Apple CDR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apple CDR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Apple CDR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Gamehost and Apple CDR

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

The idea behind Gamehost and Apple CDR 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 Transaction History module to view history of all your transactions and understand their impact on performance.