Correlation Between Guild Esports and Westlake Chemical
Can any of the company-specific risk be diversified away by investing in both Guild Esports and Westlake Chemical 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 Guild Esports and Westlake Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guild Esports Plc and Westlake Chemical Corp, you can compare the effects of market volatilities on Guild Esports and Westlake Chemical 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 Guild Esports with a short position of Westlake Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guild Esports and Westlake Chemical.
Diversification Opportunities for Guild Esports and Westlake Chemical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guild and Westlake is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guild Esports Plc and Westlake Chemical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westlake Chemical Corp and Guild Esports 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 Guild Esports Plc are associated (or correlated) with Westlake Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westlake Chemical Corp has no effect on the direction of Guild Esports i.e., Guild Esports and Westlake Chemical go up and down completely randomly.
Pair Corralation between Guild Esports and Westlake Chemical
Assuming the 90 days trading horizon Guild Esports Plc is expected to generate 5.21 times more return on investment than Westlake Chemical. However, Guild Esports is 5.21 times more volatile than Westlake Chemical Corp. It trades about 0.13 of its potential returns per unit of risk. Westlake Chemical Corp is currently generating about 0.01 per unit of risk. If you would invest 3.80 in Guild Esports Plc on November 3, 2024 and sell it today you would earn a total of 0.70 from holding Guild Esports Plc or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guild Esports Plc vs. Westlake Chemical Corp
Performance |
| Timeline |
| Guild Esports Plc |
| Westlake Chemical Corp |
Guild Esports and Westlake Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guild Esports and Westlake Chemical
The main advantage of trading using opposite Guild Esports and Westlake Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guild Esports position performs unexpectedly, Westlake Chemical 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 Westlake Chemical will offset losses from the drop in Westlake Chemical's long position.| Guild Esports vs. Roper Technologies | Guild Esports vs. Vitec Software Group | Guild Esports vs. Infineon Technologies AG | Guild Esports vs. Induction Healthcare Group |
| Westlake Chemical vs. Air Products Chemicals | Westlake Chemical vs. Cornish Metals | Westlake Chemical vs. Qurate Retail Series | Westlake Chemical vs. Grieg Seafood |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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