Correlation Between Guild Esports and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Guild Esports and Cembra Money 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 Cembra Money 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 Cembra Money Bank, you can compare the effects of market volatilities on Guild Esports and Cembra Money 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 Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guild Esports and Cembra Money.
Diversification Opportunities for Guild Esports and Cembra Money
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guild and Cembra is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guild Esports Plc and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank 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 Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Guild Esports i.e., Guild Esports and Cembra Money go up and down completely randomly.
Pair Corralation between Guild Esports and Cembra Money
Assuming the 90 days trading horizon Guild Esports Plc is expected to under-perform the Cembra Money. In addition to that, Guild Esports is 8.56 times more volatile than Cembra Money Bank. It trades about -0.05 of its total potential returns per unit of risk. Cembra Money Bank is currently generating about 0.07 per unit of volatility. If you would invest 6,498 in Cembra Money Bank on September 12, 2024 and sell it today you would earn a total of 1,852 from holding Cembra Money Bank or generate 28.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Guild Esports Plc vs. Cembra Money Bank
Performance |
| Timeline |
| Guild Esports Plc |
| Cembra Money Bank |
Guild Esports and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guild Esports and Cembra Money
The main advantage of trading using opposite Guild Esports and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guild Esports position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Guild Esports vs. Cembra Money Bank | Guild Esports vs. Alior Bank SA | Guild Esports vs. Spire Healthcare Group | Guild Esports vs. Target Healthcare REIT |
| Cembra Money vs. Hong Kong Land | Cembra Money vs. Neometals | Cembra Money vs. Coor Service Management | Cembra Money vs. Fidelity Sustainable USD |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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