Correlation Between GameStop Corp and Desarrolladora Homex

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

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

Diversification Opportunities for GameStop Corp and Desarrolladora Homex

0.0

Correlation Coefficient

GameStop Corp  Desarrolladora Homex

Pay attention - limited upside

The 3 months correlation between GameStop and Desarrolladora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Desarrolladora Homex SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desarrolladora Homex SAB and GameStop Corp 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 GameStop Corp are associated (or correlated) with Desarrolladora Homex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desarrolladora Homex SAB has no effect on the direction of GameStop Corp i.e., GameStop Corp and Desarrolladora Homex go up and down completely randomly.

Pair Corralation between GameStop Corp and Desarrolladora Homex

If you would invest  43,902  in GameStop Corp on April 15, 2025 and sell it today you would earn a total of  484.00  from holding GameStop Corp or generate 1.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

GameStop Corp  vs.  Desarrolladora Homex SAB

GameStop Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days GameStop Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Desarrolladora Homex SAB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Desarrolladora Homex SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Desarrolladora Homex is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with GameStop Corp and Desarrolladora Homex

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

The idea behind GameStop Corp and Desarrolladora Homex SAB 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.