Correlation Between Alpha Esports and Blue Hat
Can any of the company-specific risk be diversified away by investing in both Alpha Esports and Blue Hat 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 Alpha Esports and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Esports Tech and Blue Hat Interactive, you can compare the effects of market volatilities on Alpha Esports and Blue Hat 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 Alpha Esports with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Esports and Blue Hat.
Diversification Opportunities for Alpha Esports and Blue Hat
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alpha and Blue is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Esports Tech and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive and Alpha Esports 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 Alpha Esports Tech are associated (or correlated) with Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of Alpha Esports i.e., Alpha Esports and Blue Hat go up and down completely randomly.
Pair Corralation between Alpha Esports and Blue Hat
Assuming the 90 days horizon Alpha Esports Tech is expected to generate 1.95 times more return on investment than Blue Hat. However, Alpha Esports is 1.95 times more volatile than Blue Hat Interactive. It trades about 0.05 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about -0.02 per unit of risk. If you would invest 8.64 in Alpha Esports Tech on November 9, 2024 and sell it today you would lose (7.66) from holding Alpha Esports Tech or give up 88.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Alpha Esports Tech vs. Blue Hat Interactive
Performance |
| Timeline |
| Alpha Esports Tech |
| Blue Hat Interactive |
Alpha Esports and Blue Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Esports and Blue Hat
The main advantage of trading using opposite Alpha Esports and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Esports position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.The idea behind Alpha Esports Tech and Blue Hat Interactive 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.| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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