Correlation Between Gan and WW International
Can any of the company-specific risk be diversified away by investing in both Gan and WW International 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 WW International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and WW International, you can compare the effects of market volatilities on Gan and WW International 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 WW International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and WW International.
Diversification Opportunities for Gan and WW International
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and WW International is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gan and WW International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WW International 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 WW International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WW International has no effect on the direction of Gan i.e., Gan and WW International go up and down completely randomly.
Pair Corralation between Gan and WW International
Considering the 90-day investment horizon Gan is expected to generate 10.98 times less return on investment than WW International. But when comparing it to its historical volatility, Gan is 8.37 times less risky than WW International. It trades about 0.08 of its potential returns per unit of risk. WW International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 106.00 in WW International on August 30, 2024 and sell it today you would earn a total of 15.00 from holding WW International or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gan vs. WW International
Performance |
| Timeline |
| Gan |
| WW International |
Gan and WW International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and WW International
The main advantage of trading using opposite Gan and WW International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan position performs unexpectedly, WW International 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 WW International will offset losses from the drop in WW International's long position.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
| WW International vs. HR Block | WW International vs. Service International | WW International vs. Rollins | WW International 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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