Correlation Between Doubledown Interactive and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and GameSquare Holdings 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 GameSquare Holdings 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 GameSquare Holdings, you can compare the effects of market volatilities on Doubledown Interactive and GameSquare Holdings 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 GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and GameSquare Holdings.
Diversification Opportunities for Doubledown Interactive and GameSquare Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Doubledown and GameSquare is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings 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 GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and GameSquare Holdings go up and down completely randomly.
Pair Corralation between Doubledown Interactive and GameSquare Holdings
Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 0.48 times more return on investment than GameSquare Holdings. However, Doubledown Interactive Co is 2.08 times less risky than GameSquare Holdings. It trades about 0.04 of its potential returns per unit of risk. GameSquare Holdings is currently generating about 0.01 per unit of risk. If you would invest 880.00 in Doubledown Interactive Co on August 23, 2024 and sell it today you would earn a total of 552.00 from holding Doubledown Interactive Co or generate 62.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. GameSquare Holdings
Performance |
| Timeline |
| Doubledown Interactive |
| GameSquare Holdings |
Doubledown Interactive and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and GameSquare Holdings
The main advantage of trading using opposite Doubledown Interactive and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| Doubledown Interactive vs. GDEV Inc | Doubledown Interactive vs. AEye Inc | Doubledown Interactive vs. Arqit Quantum Warrants | Doubledown Interactive vs. Xos Equity Warrants |
| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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