Correlation Between Gaming Realms and FS KKR

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

By analyzing existing cross correlation between Gaming Realms plc and FS KKR Capital, you can compare the effects of market volatilities on Gaming Realms and FS KKR 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 Gaming Realms with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Realms and FS KKR.

Diversification Opportunities for Gaming Realms and FS KKR

-0.2

Correlation Coefficient

Gaming Realms  FS KKR

Good diversification

The 3 months correlation between Gaming and FSK is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Realms plc and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital and Gaming Realms 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 Gaming Realms plc are associated (or correlated) with FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Gaming Realms i.e., Gaming Realms and FS KKR go up and down completely randomly.

Pair Corralation between Gaming Realms and FS KKR

Assuming the 90 days horizon Gaming Realms plc is expected to generate 1.0 times more return on investment than FS KKR. However, Gaming Realms plc is 1.0 times less risky than FS KKR. It trades about 0.01 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.05 per unit of risk. If you would invest  65.00  in Gaming Realms plc on September 9, 2025 and sell it today you would earn a total of  0.00  from holding Gaming Realms plc or generate 0.0% return on investment over 90 days.

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

Gaming Realms plc  vs.  FS KKR Capital

Gaming Realms plc

Risk-Adjusted Performance

Weakest

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

FS KKR Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days FS KKR Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, FS KKR is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Gaming Realms and FS KKR

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

The idea behind Gaming Realms plc and FS KKR Capital 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.