Correlation Between Converge Technology and Enthusiast Gaming
Can any of the company-specific risk be diversified away by investing in both Converge Technology and Enthusiast Gaming 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 Converge Technology and Enthusiast Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Converge Technology Solutions and Enthusiast Gaming Holdings, you can compare the effects of market volatilities on Converge Technology and Enthusiast Gaming 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 Converge Technology with a short position of Enthusiast Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Technology and Enthusiast Gaming.
Diversification Opportunities for Converge Technology and Enthusiast Gaming
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Converge and Enthusiast is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Converge Technology Solutions and Enthusiast Gaming Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enthusiast Gaming and Converge Technology 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 Converge Technology Solutions are associated (or correlated) with Enthusiast Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enthusiast Gaming has no effect on the direction of Converge Technology i.e., Converge Technology and Enthusiast Gaming go up and down completely randomly.
Pair Corralation between Converge Technology and Enthusiast Gaming
Assuming the 90 days trading horizon Converge Technology Solutions is expected to generate 2.99 times more return on investment than Enthusiast Gaming. However, Converge Technology is 2.99 times more volatile than Enthusiast Gaming Holdings. It trades about 0.22 of its potential returns per unit of risk. Enthusiast Gaming Holdings is currently generating about -0.07 per unit of risk. If you would invest 351.00 in Converge Technology Solutions on November 28, 2024 and sell it today you would earn a total of 191.00 from holding Converge Technology Solutions or generate 54.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Converge Technology Solutions vs. Enthusiast Gaming Holdings
Performance |
| Timeline |
| Converge Technology |
| Enthusiast Gaming |
Converge Technology and Enthusiast Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Technology and Enthusiast Gaming
The main advantage of trading using opposite Converge Technology and Enthusiast Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Technology position performs unexpectedly, Enthusiast Gaming 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 Enthusiast Gaming will offset losses from the drop in Enthusiast Gaming's long position.| Converge Technology vs. Dye Durham | Converge Technology vs. Docebo Inc | Converge Technology vs. Topicus | Converge Technology vs. goeasy |
| Enthusiast Gaming vs. Bragg Gaming Group | Enthusiast Gaming vs. ESE Entertainment | Enthusiast Gaming vs. Converge Technology Solutions | Enthusiast Gaming vs. Docebo 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |