Correlation Between GameSquare Holdings and Golden Matrix

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

By analyzing existing cross correlation between GameSquare Holdings and Golden Matrix Group, you can compare the effects of market volatilities on GameSquare Holdings and Golden Matrix 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 Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and Golden Matrix.

Diversification Opportunities for GameSquare Holdings and Golden Matrix

0.17

Correlation Coefficient

GameSquare Holdings  Golden Matrix

Average diversification

The 3 months correlation between GameSquare and Golden is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and Golden Matrix go up and down completely randomly.

Pair Corralation between GameSquare Holdings and Golden Matrix

Given the investment horizon of 90 days GameSquare Holdings is expected to generate 0.89 times more return on investment than Golden Matrix. However, GameSquare Holdings is 1.13 times less risky than Golden Matrix. It trades about -0.05 of its potential returns per unit of risk. Golden Matrix Group is currently generating about -0.17 per unit of risk. If you would invest  88.00  in GameSquare Holdings on September 21, 2024 and sell it today you would lose (6.00) from holding GameSquare Holdings or give up 6.82% of portfolio value over 90 days.

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

GameSquare Holdings  vs.  Golden Matrix Group

GameSquare Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GameSquare Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, GameSquare Holdings is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with GameSquare Holdings and Golden Matrix

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

The idea behind GameSquare Holdings and Golden Matrix Group 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.

Check out your portfolio center.

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 CEOs Directory module to screen CEOs from public companies around the world.