Correlation Between Gaming Factory and MCI Management

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

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

Diversification Opportunities for Gaming Factory and MCI Management

-0.6

Correlation Coefficient

Gaming Factory  MCI Management

Excellent diversification

The 3 months correlation between Gaming and MCI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Factory SA and MCI Management SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCI Management SA and Gaming Factory 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 Gaming Factory SA are associated (or correlated) with MCI Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCI Management SA has no effect on the direction of Gaming Factory i.e., Gaming Factory and MCI Management go up and down completely randomly.

Pair Corralation between Gaming Factory and MCI Management

Assuming the 90 days trading horizon Gaming Factory SA is expected to under-perform the MCI Management. In addition to that, Gaming Factory is 3.06 times more volatile than MCI Management SA. It trades about -0.15 of its total potential returns per unit of risk. MCI Management SA is currently generating about 0.19 per unit of volatility. If you would invest  2,440  in MCI Management SA on April 24, 2025 and sell it today you would earn a total of  450.00  from holding MCI Management SA or generate 18.44% return on investment over 90 days.

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

Gaming Factory SA  vs.  MCI Management SA

Gaming Factory SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaming Factory SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

MCI Management SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MCI Management SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, MCI Management reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gaming Factory and MCI Management

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

The idea behind Gaming Factory SA and MCI Management SA 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.