Correlation Between Ebet and FAT Brands
Can any of the company-specific risk be diversified away by investing in both Ebet and FAT Brands 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 Ebet and FAT Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebet Inc and FAT Brands, you can compare the effects of market volatilities on Ebet and FAT Brands 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 Ebet with a short position of FAT Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebet and FAT Brands.
Diversification Opportunities for Ebet and FAT Brands
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ebet and FAT is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc and FAT Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAT Brands and Ebet 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 Ebet Inc are associated (or correlated) with FAT Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAT Brands has no effect on the direction of Ebet i.e., Ebet and FAT Brands go up and down completely randomly.
Pair Corralation between Ebet and FAT Brands
If you would invest 982.00 in FAT Brands on November 5, 2024 and sell it today you would earn a total of 11.00 from holding FAT Brands or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Ebet Inc vs. FAT Brands
Performance |
| Timeline |
| Ebet Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FAT Brands |
Ebet and FAT Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebet and FAT Brands
The main advantage of trading using opposite Ebet and FAT Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebet position performs unexpectedly, FAT Brands 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 FAT Brands will offset losses from the drop in FAT Brands' long position.| Ebet vs. PointsBet Holdings Limited | Ebet vs. Gan | Ebet vs. Rush Street Interactive | Ebet vs. Lottery, Warrants |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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