Correlation Between Corsair Gaming and Bill Holdings
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Bill Holdings 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 Corsair Gaming and Bill Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Bill Holdings, you can compare the effects of market volatilities on Corsair Gaming and Bill Holdings 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 Corsair Gaming with a short position of Bill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Bill Holdings.
Diversification Opportunities for Corsair Gaming and Bill Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corsair and Bill is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Bill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Holdings and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Bill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Holdings has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Bill Holdings go up and down completely randomly.
Pair Corralation between Corsair Gaming and Bill Holdings
Assuming the 90 days horizon Corsair Gaming is expected to generate 2.65 times less return on investment than Bill Holdings. In addition to that, Corsair Gaming is 1.26 times more volatile than Bill Holdings. It trades about 0.12 of its total potential returns per unit of risk. Bill Holdings is currently generating about 0.41 per unit of volatility. If you would invest 5,350 in Bill Holdings on September 5, 2024 and sell it today you would earn a total of 2,823 from holding Bill Holdings or generate 52.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Corsair Gaming vs. Bill Holdings
Performance |
| Timeline |
| Corsair Gaming |
| Bill Holdings |
Corsair Gaming and Bill Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Bill Holdings
The main advantage of trading using opposite Corsair Gaming and Bill Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Bill Holdings 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 Bill Holdings will offset losses from the drop in Bill Holdings' long position.| Corsair Gaming vs. Lion One Metals | Corsair Gaming vs. LION ONE METALS | Corsair Gaming vs. FIREWEED METALS P | Corsair Gaming vs. Kaiser Aluminum |
| Bill Holdings vs. NORWEGIAN AIR SHUT | Bill Holdings vs. Diamyd Medical AB | Bill Holdings vs. Altair Engineering | Bill Holdings vs. Corsair Gaming |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |