Correlation Between Gamehost and Apple

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

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

Diversification Opportunities for Gamehost and Apple

0.58

Correlation Coefficient

Gamehost  Apple

Very weak diversification

The 3 months correlation between Gamehost and Apple is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and Gamehost 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 Gamehost are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc CDR has no effect on the direction of Gamehost i.e., Gamehost and Apple go up and down completely randomly.

Pair Corralation between Gamehost and Apple

Assuming the 90 days horizon Gamehost is expected to generate 4.24 times less return on investment than Apple. But when comparing it to its historical volatility, Gamehost is 1.8 times less risky than Apple. It trades about 0.07 of its potential returns per unit of risk. Apple Inc CDR is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3,855  in Apple Inc CDR on September 2, 2025 and sell it today you would earn a total of  130.00  from holding Apple Inc CDR or generate 3.37% return on investment over 90 days.

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

Gamehost  vs.  Apple Inc CDR

Gamehost

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Gamehost are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Gamehost is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Apple Inc CDR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc CDR are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Apple exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gamehost and Apple

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

The idea behind Gamehost and Apple Inc CDR 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.