Correlation Between Gambling and Inspired Entertainment
Can any of the company-specific risk be diversified away by investing in both Gambling and Inspired Entertainment 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 Gambling and Inspired Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gambling Group and Inspired Entertainment, you can compare the effects of market volatilities on Gambling and Inspired Entertainment 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 Gambling with a short position of Inspired Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gambling and Inspired Entertainment.
Diversification Opportunities for Gambling and Inspired Entertainment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gambling and Inspired is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gambling Group and Inspired Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspired Entertainment and Gambling 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 Gambling Group are associated (or correlated) with Inspired Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspired Entertainment has no effect on the direction of Gambling i.e., Gambling and Inspired Entertainment go up and down completely randomly.
Pair Corralation between Gambling and Inspired Entertainment
Given the investment horizon of 90 days Gambling Group is expected to under-perform the Inspired Entertainment. In addition to that, Gambling is 1.71 times more volatile than Inspired Entertainment. It trades about -0.02 of its total potential returns per unit of risk. Inspired Entertainment is currently generating about 0.5 per unit of volatility. If you would invest 883.00 in Inspired Entertainment on November 2, 2024 and sell it today you would earn a total of 119.00 from holding Inspired Entertainment or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gambling Group vs. Inspired Entertainment
Performance |
| Timeline |
| Gambling Group |
| Inspired Entertainment |
Gambling and Inspired Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gambling and Inspired Entertainment
The main advantage of trading using opposite Gambling and Inspired Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gambling position performs unexpectedly, Inspired Entertainment 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 Inspired Entertainment will offset losses from the drop in Inspired Entertainment's long position.| Gambling vs. Codere Online Corp | Gambling vs. Accel Entertainment | Gambling vs. PlayAGS | Gambling vs. Canterbury Park Holding |
| Inspired Entertainment vs. Canterbury Park Holding | Inspired Entertainment vs. Accel Entertainment | Inspired Entertainment vs. Gambling Group | Inspired Entertainment vs. PlayAGS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |