Correlation Between Activision Blizzard and Skillz Platform
Can any of the company-specific risk be diversified away by investing in both Activision Blizzard and Skillz Platform 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 Activision Blizzard and Skillz Platform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Activision Blizzard and Skillz Platform, you can compare the effects of market volatilities on Activision Blizzard and Skillz Platform 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 Activision Blizzard with a short position of Skillz Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Activision Blizzard and Skillz Platform.
Diversification Opportunities for Activision Blizzard and Skillz Platform
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Activision and Skillz is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Activision Blizzard and Skillz Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skillz Platform and Activision Blizzard 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 Activision Blizzard are associated (or correlated) with Skillz Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skillz Platform has no effect on the direction of Activision Blizzard i.e., Activision Blizzard and Skillz Platform go up and down completely randomly.
Pair Corralation between Activision Blizzard and Skillz Platform
Given the investment horizon of 90 days Activision Blizzard is expected to generate 0.41 times more return on investment than Skillz Platform. However, Activision Blizzard is 2.44 times less risky than Skillz Platform. It trades about 0.21 of its potential returns per unit of risk. Skillz Platform is currently generating about -0.01 per unit of risk. If you would invest 8,084 in Activision Blizzard on August 27, 2024 and sell it today you would earn a total of 1,171 from holding Activision Blizzard or generate 14.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 9.38% |
| Values | Daily Returns |
Activision Blizzard vs. Skillz Platform
Performance |
| Timeline |
| Activision Blizzard |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Skillz Platform |
Activision Blizzard and Skillz Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Activision Blizzard and Skillz Platform
The main advantage of trading using opposite Activision Blizzard and Skillz Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Activision Blizzard position performs unexpectedly, Skillz Platform 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 Skillz Platform will offset losses from the drop in Skillz Platform's long position.| Activision Blizzard vs. Take Two Interactive Software | Activision Blizzard vs. Nintendo Co ADR | Activision Blizzard vs. NetEase | Activision Blizzard vs. Playtika Holding Corp |
| Skillz Platform vs. Bilibili | Skillz Platform vs. Take Two Interactive Software | Skillz Platform vs. NetEase | Skillz Platform vs. Roblox Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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