Correlation Between Stillfront Group and G5 Entertainment

Can any of the company-specific risk be diversified away by investing in both Stillfront Group and G5 Entertainment 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 Stillfront Group and G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stillfront Group AB and G5 Entertainment publ, you can compare the effects of market volatilities on Stillfront Group and G5 Entertainment 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 Stillfront Group with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and G5 Entertainment.

Diversification Opportunities for Stillfront Group and G5 Entertainment

-0.13

Correlation Coefficient

Stillfront Group  G5 Entertainment

Good diversification

The 3 months correlation between Stillfront and G5EN is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and G5 Entertainment publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment publ and Stillfront Group 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 Stillfront Group AB are associated (or correlated) with G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment publ has no effect on the direction of Stillfront Group i.e., Stillfront Group and G5 Entertainment go up and down completely randomly.

Pair Corralation between Stillfront Group and G5 Entertainment

Assuming the 90 days horizon Stillfront Group AB is expected to under-perform the G5 Entertainment. In addition to that, Stillfront Group is 1.43 times more volatile than G5 Entertainment publ. It trades about -0.04 of its total potential returns per unit of risk. G5 Entertainment publ is currently generating about -0.03 per unit of volatility. If you would invest  16,992  in G5 Entertainment publ on March 24, 2025 and sell it today you would lose (5,992) from holding G5 Entertainment publ or give up 35.26% of portfolio value over 90 days.

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

Stillfront Group AB  vs.  G5 Entertainment publ

Stillfront Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stillfront Group AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stillfront Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

G5 Entertainment publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days G5 Entertainment publ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, G5 Entertainment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Stillfront Group and G5 Entertainment

The main advantage of trading using opposite Stillfront Group and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.

The idea behind Stillfront Group AB and G5 Entertainment publ 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.