Correlation Between CONTAGIOUS GAMING and Berkeley Energia

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

By analyzing existing cross correlation between CONTAGIOUS GAMING INC and Berkeley Energia Limited, you can compare the effects of market volatilities on CONTAGIOUS GAMING and Berkeley Energia 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 CONTAGIOUS GAMING with a short position of Berkeley Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and Berkeley Energia.

Diversification Opportunities for CONTAGIOUS GAMING and Berkeley Energia

0.0

Correlation Coefficient

CONTAGIOUS GAMING  Berkeley Energia

Pay attention - limited upside

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

Pair Corralation between CONTAGIOUS GAMING and Berkeley Energia

If you would invest  31.00  in Berkeley Energia Limited on April 20, 2025 and sell it today you would lose (1.00) from holding Berkeley Energia Limited or give up 3.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CONTAGIOUS GAMING INC  vs.  Berkeley Energia Limited

CONTAGIOUS GAMING INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days CONTAGIOUS GAMING INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CONTAGIOUS GAMING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Berkeley Energia

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Berkeley Energia Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Berkeley Energia is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CONTAGIOUS GAMING and Berkeley Energia

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

The idea behind CONTAGIOUS GAMING INC and Berkeley Energia Limited 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.