Correlation Between Gan and Empire Global
Can any of the company-specific risk be diversified away by investing in both Gan and Empire Global 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 Gan and Empire Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and Empire Global Gaming, you can compare the effects of market volatilities on Gan and Empire Global 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 Gan with a short position of Empire Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and Empire Global.
Diversification Opportunities for Gan and Empire Global
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and Empire is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gan and Empire Global Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empire Global Gaming and Gan 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 Gan are associated (or correlated) with Empire Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empire Global Gaming has no effect on the direction of Gan i.e., Gan and Empire Global go up and down completely randomly.
Pair Corralation between Gan and Empire Global
Considering the 90-day investment horizon Gan is expected to generate 0.07 times more return on investment than Empire Global. However, Gan is 13.5 times less risky than Empire Global. It trades about 0.08 of its potential returns per unit of risk. Empire Global Gaming is currently generating about -0.17 per unit of risk. If you would invest 173.00 in Gan on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Gan or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan vs. Empire Global Gaming
Performance |
| Timeline |
| Gan |
| Empire Global Gaming |
Gan and Empire Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and Empire Global
The main advantage of trading using opposite Gan and Empire Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan position performs unexpectedly, Empire Global 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 Empire Global will offset losses from the drop in Empire Global's long position.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
| Empire Global vs. Churchill Downs Incorporated | Empire Global vs. Gan | Empire Global vs. Rush Street Interactive | Empire Global vs. Lottery, Common Stock |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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