Correlation Between Allied Gaming and Cinedigm Corp
Can any of the company-specific risk be diversified away by investing in both Allied Gaming and Cinedigm Corp 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 Allied Gaming and Cinedigm Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allied Gaming Entertainment and Cinedigm Corp, you can compare the effects of market volatilities on Allied Gaming and Cinedigm Corp 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 Allied Gaming with a short position of Cinedigm Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Gaming and Cinedigm Corp.
Diversification Opportunities for Allied Gaming and Cinedigm Corp
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allied and Cinedigm is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allied Gaming Entertainment and Cinedigm Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinedigm Corp and Allied 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 Allied Gaming Entertainment are associated (or correlated) with Cinedigm Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinedigm Corp has no effect on the direction of Allied Gaming i.e., Allied Gaming and Cinedigm Corp go up and down completely randomly.
Pair Corralation between Allied Gaming and Cinedigm Corp
If you would invest 29.00 in Cinedigm Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Cinedigm Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Gaming Entertainment vs. Cinedigm Corp
Performance |
| Timeline |
| Allied Gaming Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cinedigm Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allied Gaming and Cinedigm Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Gaming and Cinedigm Corp
The main advantage of trading using opposite Allied Gaming and Cinedigm Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Gaming position performs unexpectedly, Cinedigm Corp 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 Cinedigm Corp will offset losses from the drop in Cinedigm Corp's long position.The idea behind Allied Gaming Entertainment and Cinedigm Corp 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.| Cinedigm Corp vs. Cineverse Corp | Cinedigm Corp vs. AMC Entertainment Holdings | Cinedigm Corp vs. Manchester United | Cinedigm Corp vs. iQIYI Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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