Correlation Between Doubledown Interactive and Blue Hat

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Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and Blue Hat 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 Doubledown Interactive and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Blue Hat Interactive, you can compare the effects of market volatilities on Doubledown Interactive and Blue Hat 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 Doubledown Interactive with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Blue Hat.

Diversification Opportunities for Doubledown Interactive and Blue Hat

DoubledownBlueDiversified AwayDoubledownBlueDiversified Away100%
0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Doubledown and Blue is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Blue Hat go up and down completely randomly.

Pair Corralation between Doubledown Interactive and Blue Hat

Considering the 90-day investment horizon Doubledown Interactive Co is expected to under-perform the Blue Hat. But the stock apears to be less risky and, when comparing its historical volatility, Doubledown Interactive Co is 5.86 times less risky than Blue Hat. The stock trades about -0.06 of its potential returns per unit of risk. The Blue Hat Interactive is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5.64  in Blue Hat Interactive on November 25, 2024 and sell it today you would lose (0.16) from holding Blue Hat Interactive or give up 2.84% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Doubledown Interactive Co  vs.  Blue Hat Interactive

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -80-60-40-20
JavaScript chart by amCharts 3.21.15DDI BHAT
       Timeline  
Doubledown Interactive 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb101112131415
Blue Hat Interactive 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Blue Hat Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.050.10.150.20.25

Doubledown Interactive and Blue Hat Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.35-4.01-2.67-1.32-0.01811.052.133.224.35.38 0.010.020.030.04
JavaScript chart by amCharts 3.21.15DDI BHAT
       Returns  

Pair Trading with Doubledown Interactive and Blue Hat

The main advantage of trading using opposite Doubledown Interactive and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.
The idea behind Doubledown Interactive Co and Blue Hat Interactive pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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