Correlation Between Gan and Esports Entertainment
Can any of the company-specific risk be diversified away by investing in both Gan and Esports 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 Gan and Esports Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and Esports Entertainment Group, you can compare the effects of market volatilities on Gan and Esports 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 Gan with a short position of Esports Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and Esports Entertainment.
Diversification Opportunities for Gan and Esports Entertainment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Esports is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gan and Esports Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esports Entertainment 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 Esports Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esports Entertainment has no effect on the direction of Gan i.e., Gan and Esports Entertainment go up and down completely randomly.
Pair Corralation between Gan and Esports Entertainment
Considering the 90-day investment horizon Gan is expected to generate 6.64 times less return on investment than Esports Entertainment. In addition to that, Gan is 1.81 times more volatile than Esports Entertainment Group. It trades about 0.02 of its total potential returns per unit of risk. Esports Entertainment Group is currently generating about 0.28 per unit of volatility. If you would invest 524.00 in Esports Entertainment Group on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Esports Entertainment Group or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Gan vs. Esports Entertainment Group
Performance |
| Timeline |
| Gan |
| Esports Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gan and Esports Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and Esports Entertainment
The main advantage of trading using opposite Gan and Esports Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan position performs unexpectedly, Esports 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 Esports Entertainment will offset losses from the drop in Esports Entertainment's long position.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
| Esports Entertainment vs. Soluna Holdings Preferred | Esports Entertainment vs. FAT Brands | Esports Entertainment vs. Fortress Biotech Pref |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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