Correlation Between Cembra Money and Guild Esports
Can any of the company-specific risk be diversified away by investing in both Cembra Money and Guild Esports 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 Cembra Money and Guild Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Guild Esports Plc, you can compare the effects of market volatilities on Cembra Money and Guild Esports 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 Cembra Money with a short position of Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Guild Esports.
Diversification Opportunities for Cembra Money and Guild Esports
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cembra and Guild is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc and Cembra Money 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 Cembra Money Bank are associated (or correlated) with Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of Cembra Money i.e., Cembra Money and Guild Esports go up and down completely randomly.
Pair Corralation between Cembra Money and Guild Esports
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 0.11 times more return on investment than Guild Esports. However, Cembra Money Bank is 9.3 times less risky than Guild Esports. It trades about 0.48 of its potential returns per unit of risk. Guild Esports Plc is currently generating about -0.03 per unit of risk. If you would invest 7,890 in Cembra Money Bank on September 13, 2024 and sell it today you would earn a total of 515.00 from holding Cembra Money Bank or generate 6.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cembra Money Bank vs. Guild Esports Plc
Performance |
Timeline |
Cembra Money Bank |
Guild Esports Plc |
Cembra Money and Guild Esports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cembra Money and Guild Esports
The main advantage of trading using opposite Cembra Money and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Hyundai Motor | Cembra Money vs. Reliance Industries Ltd |
Guild Esports vs. Catalyst Media Group | Guild Esports vs. CATLIN GROUP | Guild Esports vs. RTW Venture Fund | Guild Esports vs. SANTANDER UK 10 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |