Correlation Between Electronic Arts and Blue Hat
Can any of the company-specific risk be diversified away by investing in both Electronic Arts 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 Electronic Arts and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Blue Hat Interactive, you can compare the effects of market volatilities on Electronic Arts 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 Electronic Arts with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Blue Hat.
Diversification Opportunities for Electronic Arts and Blue Hat
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electronic and Blue is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts 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 Electronic Arts 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 Electronic Arts 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 Electronic Arts i.e., Electronic Arts and Blue Hat go up and down completely randomly.
Pair Corralation between Electronic Arts and Blue Hat
Allowing for the 90-day total investment horizon Electronic Arts is expected to generate 0.17 times more return on investment than Blue Hat. However, Electronic Arts is 5.91 times less risky than Blue Hat. It trades about 0.05 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about 0.0 per unit of risk. If you would invest 13,093 in Electronic Arts on August 23, 2024 and sell it today you would earn a total of 3,578 from holding Electronic Arts or generate 27.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronic Arts vs. Blue Hat Interactive
Performance |
| Timeline |
| Electronic Arts |
| Blue Hat Interactive |
Electronic Arts and Blue Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Blue Hat
The main advantage of trading using opposite Electronic Arts and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts 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.| Electronic Arts vs. Nintendo Co ADR | Electronic Arts vs. Roblox Corp | Electronic Arts vs. NetEase | Electronic Arts vs. Take Two Interactive Software |
| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |