Correlation Between K Bro and Gamehost

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

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

Diversification Opportunities for K Bro and Gamehost

-0.37

Correlation Coefficient

K Bro  Gamehost

Very good diversification

The 3 months correlation between KBL and Gamehost is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding K Bro Linen and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost and K Bro 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 K Bro Linen 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 K Bro i.e., K Bro and Gamehost go up and down completely randomly.

Pair Corralation between K Bro and Gamehost

Assuming the 90 days trading horizon K Bro Linen is expected to under-perform the Gamehost. In addition to that, K Bro is 1.33 times more volatile than Gamehost. It trades about -0.02 of its total potential returns per unit of risk. Gamehost is currently generating about 0.42 per unit of volatility. If you would invest  980.00  in Gamehost on April 23, 2025 and sell it today you would earn a total of  250.00  from holding Gamehost or generate 25.51% return on investment over 90 days.

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

K Bro Linen  vs.  Gamehost

K Bro Linen

Risk-Adjusted Performance

Very Weak

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

Gamehost

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 32 (%) 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 K Bro and Gamehost

The main advantage of trading using opposite K Bro and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K Bro 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 K Bro Linen 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.