Correlation Between GameSquare Holdings and GDEV

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

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

Diversification Opportunities for GameSquare Holdings and GDEV

0.11

Correlation Coefficient

GameSquare Holdings  GDEV

Average diversification

The 3 months correlation between GameSquare and GDEV is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc and GameSquare Holdings 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 GameSquare Holdings are associated (or correlated) with GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and GDEV go up and down completely randomly.

Pair Corralation between GameSquare Holdings and GDEV

Given the investment horizon of 90 days GameSquare Holdings is expected to generate 1.8 times more return on investment than GDEV. However, GameSquare Holdings is 1.8 times more volatile than GDEV Inc. It trades about 0.15 of its potential returns per unit of risk. GDEV Inc is currently generating about 0.12 per unit of risk. If you would invest  70.00  in GameSquare Holdings on April 20, 2025 and sell it today you would earn a total of  82.00  from holding GameSquare Holdings or generate 117.14% return on investment over 90 days.

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

GameSquare Holdings  vs.  GDEV Inc

GameSquare Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GameSquare Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, GameSquare Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

GDEV Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GDEV Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, GDEV showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GameSquare Holdings and GDEV

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

The idea behind GameSquare Holdings and GDEV Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.