Correlation Between Gamehost and IDEX Metals

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

By analyzing existing cross correlation between Gamehost and IDEX Metals Corp, you can compare the effects of market volatilities on Gamehost and IDEX Metals 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 IDEX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamehost and IDEX Metals.

Diversification Opportunities for Gamehost and IDEX Metals

-0.41

Correlation Coefficient

Gamehost  IDEX Metals

Very good diversification

The 3 months correlation between Gamehost and IDEX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and IDEX Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDEX Metals Corp 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 IDEX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDEX Metals Corp has no effect on the direction of Gamehost i.e., Gamehost and IDEX Metals go up and down completely randomly.

Pair Corralation between Gamehost and IDEX Metals

Assuming the 90 days horizon Gamehost is expected to generate 0.29 times more return on investment than IDEX Metals. However, Gamehost is 3.49 times less risky than IDEX Metals. It trades about 0.41 of its potential returns per unit of risk. IDEX Metals Corp is currently generating about -0.01 per unit of risk. If you would invest  978.00  in Gamehost on April 21, 2025 and sell it today you would earn a total of  260.00  from holding Gamehost or generate 26.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	45.31%
Values	Daily Returns

Gamehost  vs.  IDEX Metals Corp

Gamehost

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 31 (%) 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.

IDEX Metals Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days IDEX Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, IDEX Metals is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Gamehost and IDEX Metals

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

The idea behind Gamehost and IDEX Metals Corp 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.