Correlation Between GameSquare Holdings and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings and Doubledown Interactive 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 GameSquare Holdings and Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameSquare Holdings and Doubledown Interactive Co, you can compare the effects of market volatilities on GameSquare Holdings and Doubledown Interactive 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 GameSquare Holdings with a short position of Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and Doubledown Interactive.
Diversification Opportunities for GameSquare Holdings and Doubledown Interactive
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between GameSquare and Doubledown is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive and GameSquare Holdings 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 GameSquare Holdings are associated (or correlated) with Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of GameSquare Holdings i.e., GameSquare Holdings and Doubledown Interactive go up and down completely randomly.
Pair Corralation between GameSquare Holdings and Doubledown Interactive
Given the investment horizon of 90 days GameSquare Holdings is expected to generate 1.17 times less return on investment than Doubledown Interactive. In addition to that, GameSquare Holdings is 2.14 times more volatile than Doubledown Interactive Co. It trades about 0.01 of its total potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.04 per unit of volatility. If you would invest 1,061 in Doubledown Interactive Co on August 27, 2024 and sell it today you would earn a total of 396.00 from holding Doubledown Interactive Co or generate 37.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameSquare Holdings vs. Doubledown Interactive Co
Performance |
| Timeline |
| GameSquare Holdings |
| Doubledown Interactive |
GameSquare Holdings and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameSquare Holdings and Doubledown Interactive
The main advantage of trading using opposite GameSquare Holdings and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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