Correlation Between Gan and Playmaker Capital
Can any of the company-specific risk be diversified away by investing in both Gan and Playmaker Capital 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 Playmaker Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and Playmaker Capital, you can compare the effects of market volatilities on Gan and Playmaker Capital 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 Playmaker Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and Playmaker Capital.
Diversification Opportunities for Gan and Playmaker Capital
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gan and Playmaker is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gan and Playmaker Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playmaker Capital 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 Playmaker Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playmaker Capital has no effect on the direction of Gan i.e., Gan and Playmaker Capital go up and down completely randomly.
Pair Corralation between Gan and Playmaker Capital
Considering the 90-day investment horizon Gan is expected to generate 2.54 times more return on investment than Playmaker Capital. However, Gan is 2.54 times more volatile than Playmaker Capital. It trades about 0.02 of its potential returns per unit of risk. Playmaker Capital is currently generating about -0.27 per unit of risk. If you would invest 172.00 in Gan on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Gan or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 3.95% |
| Values | Daily Returns |
Gan vs. Playmaker Capital
Performance |
| Timeline |
| Gan |
| Playmaker Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gan and Playmaker Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and Playmaker Capital
The main advantage of trading using opposite Gan and Playmaker Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan position performs unexpectedly, Playmaker Capital 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 Playmaker Capital will offset losses from the drop in Playmaker Capital's long position.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
| Playmaker Capital vs. 888 Holdings | Playmaker Capital vs. Real Luck Group | Playmaker Capital vs. Royal Wins | Playmaker Capital vs. Betmakers Technology Group |
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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