Correlation Between Endeavor Group and The9
Can any of the company-specific risk be diversified away by investing in both Endeavor Group and The9 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 Endeavor Group and The9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavor Group Holdings and The9 Ltd ADR, you can compare the effects of market volatilities on Endeavor Group and The9 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 Endeavor Group with a short position of The9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavor Group and The9.
Diversification Opportunities for Endeavor Group and The9
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Endeavor and The9 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Endeavor Group Holdings and The9 Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The9 Ltd ADR and Endeavor Group 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 Endeavor Group Holdings are associated (or correlated) with The9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The9 Ltd ADR has no effect on the direction of Endeavor Group i.e., Endeavor Group and The9 go up and down completely randomly.
Pair Corralation between Endeavor Group and The9
Considering the 90-day investment horizon Endeavor Group is expected to generate 14.08 times less return on investment than The9. But when comparing it to its historical volatility, Endeavor Group Holdings is 5.51 times less risky than The9. It trades about 0.09 of its potential returns per unit of risk. The9 Ltd ADR is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 824.00 in The9 Ltd ADR on November 1, 2024 and sell it today you would earn a total of 807.00 from holding The9 Ltd ADR or generate 97.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavor Group Holdings vs. The9 Ltd ADR
Performance |
| Timeline |
| Endeavor Group Holdings |
| The9 Ltd ADR |
Endeavor Group and The9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavor Group and The9
The main advantage of trading using opposite Endeavor Group and The9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavor Group position performs unexpectedly, The9 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 The9 will offset losses from the drop in The9's long position.| Endeavor Group vs. Live Nation Entertainment | Endeavor Group vs. Manchester United | Endeavor Group vs. Warner Music Group | Endeavor Group vs. Liberty Media |
| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |