Correlation Between Gan and HR Block
Can any of the company-specific risk be diversified away by investing in both Gan and HR Block 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 HR Block into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and HR Block, you can compare the effects of market volatilities on Gan and HR Block 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 HR Block. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and HR Block.
Diversification Opportunities for Gan and HR Block
Excellent diversification
The 3 months correlation between Gan and HRB is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gan and HR Block in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Block 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 HR Block. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Block has no effect on the direction of Gan i.e., Gan and HR Block go up and down completely randomly.
Pair Corralation between Gan and HR Block
Considering the 90-day investment horizon Gan is expected to generate 0.33 times more return on investment than HR Block. However, Gan is 3.01 times less risky than HR Block. It trades about 0.09 of its potential returns per unit of risk. HR Block is currently generating about -0.04 per unit of risk. If you would invest 181.00 in Gan on August 26, 2024 and sell it today you would earn a total of 3.00 from holding Gan or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan vs. HR Block
Performance |
| Timeline |
| Gan |
| HR Block |
Gan and HR Block Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and HR Block
The main advantage of trading using opposite Gan and HR Block positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan position performs unexpectedly, HR Block 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 HR Block will offset losses from the drop in HR Block's long position.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
| HR Block vs. Bright Horizons Family | HR Block vs. Smart Share Global | HR Block vs. Mister Car Wash | HR Block vs. Carriage Services |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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