Correlation Between Blue Hat and GameOn Entertainment
Can any of the company-specific risk be diversified away by investing in both Blue Hat and GameOn Entertainment 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 GameOn Entertainment 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 GameOn Entertainment Technologies, you can compare the effects of market volatilities on Blue Hat and GameOn Entertainment 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 GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and GameOn Entertainment.
Diversification Opportunities for Blue Hat and GameOn Entertainment
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and GameOn is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment 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 GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of Blue Hat i.e., Blue Hat and GameOn Entertainment go up and down completely randomly.
Pair Corralation between Blue Hat and GameOn Entertainment
Given the investment horizon of 90 days Blue Hat Interactive is expected to under-perform the GameOn Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Blue Hat Interactive is 5.03 times less risky than GameOn Entertainment. The stock trades about -0.52 of its potential returns per unit of risk. The GameOn Entertainment Technologies is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2.64 in GameOn Entertainment Technologies on August 31, 2024 and sell it today you would lose (1.82) from holding GameOn Entertainment Technologies or give up 68.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Hat Interactive vs. GameOn Entertainment Technolog
Performance |
| Timeline |
| Blue Hat Interactive |
| GameOn Entertainment |
Blue Hat and GameOn Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Hat and GameOn Entertainment
The main advantage of trading using opposite Blue Hat and GameOn Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Hat position performs unexpectedly, GameOn Entertainment 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 GameOn Entertainment will offset losses from the drop in GameOn Entertainment's long position.| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG Inc |
| GameOn Entertainment vs. Capcom Co Ltd | GameOn Entertainment vs. CD Projekt SA | GameOn Entertainment vs. Sega Sammy Holdings | GameOn Entertainment vs. Playtika Holding 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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