Correlation Between Blue Hat and Alpha Esports
Can any of the company-specific risk be diversified away by investing in both Blue Hat and Alpha 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 Blue Hat and Alpha Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Hat Interactive and Alpha Esports Tech, you can compare the effects of market volatilities on Blue Hat and Alpha 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 Blue Hat with a short position of Alpha Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and Alpha Esports.
Diversification Opportunities for Blue Hat and Alpha Esports
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Alpha is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and Alpha Esports Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Esports Tech and Blue Hat 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 Blue Hat Interactive are associated (or correlated) with Alpha Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Esports Tech has no effect on the direction of Blue Hat i.e., Blue Hat and Alpha Esports go up and down completely randomly.
Pair Corralation between Blue Hat and Alpha Esports
Given the investment horizon of 90 days Blue Hat Interactive is expected to generate 0.91 times more return on investment than Alpha Esports. However, Blue Hat Interactive is 1.1 times less risky than Alpha Esports. It trades about -0.15 of its potential returns per unit of risk. Alpha Esports Tech is currently generating about -0.14 per unit of risk. If you would invest 8.55 in Blue Hat Interactive on November 9, 2024 and sell it today you would lose (3.87) from holding Blue Hat Interactive or give up 45.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Hat Interactive vs. Alpha Esports Tech
Performance |
| Timeline |
| Blue Hat Interactive |
| Alpha Esports Tech |
Blue Hat and Alpha Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Hat and Alpha Esports
The main advantage of trading using opposite Blue Hat and Alpha Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Hat position performs unexpectedly, Alpha 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 Alpha Esports will offset losses from the drop in Alpha Esports' long position.| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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