Correlation Between Churchill Downs and Gan
Can any of the company-specific risk be diversified away by investing in both Churchill Downs and Gan 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 Churchill Downs and Gan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Churchill Downs Incorporated and Gan, you can compare the effects of market volatilities on Churchill Downs and Gan 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 Churchill Downs with a short position of Gan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Downs and Gan.
Diversification Opportunities for Churchill Downs and Gan
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Churchill and Gan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Downs Incorporated and Gan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan and Churchill Downs 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 Churchill Downs Incorporated are associated (or correlated) with Gan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan has no effect on the direction of Churchill Downs i.e., Churchill Downs and Gan go up and down completely randomly.
Pair Corralation between Churchill Downs and Gan
Given the investment horizon of 90 days Churchill Downs Incorporated is expected to under-perform the Gan. In addition to that, Churchill Downs is 2.13 times more volatile than Gan. It trades about -0.01 of its total potential returns per unit of risk. Gan is currently generating about 0.06 per unit of volatility. If you would invest 181.00 in Gan on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Gan or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Churchill Downs Incorporated vs. Gan
Performance |
| Timeline |
| Churchill Downs |
| Gan |
Churchill Downs and Gan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Churchill Downs and Gan
The main advantage of trading using opposite Churchill Downs and Gan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Downs position performs unexpectedly, Gan 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 Gan will offset losses from the drop in Gan's long position.| Churchill Downs vs. Accel Entertainment | Churchill Downs vs. PlayAGS | Churchill Downs vs. International Game Technology | Churchill Downs vs. Everi Holdings |
| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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