Correlation Between Esports Entertainment and Gan
Can any of the company-specific risk be diversified away by investing in both Esports Entertainment and Gan 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 Esports Entertainment and Gan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esports Entertainment Group and Gan, you can compare the effects of market volatilities on Esports Entertainment and Gan 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 Esports Entertainment with a short position of Gan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esports Entertainment and Gan.
Diversification Opportunities for Esports Entertainment and Gan
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esports and Gan is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Esports Entertainment Group and Gan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan and Esports Entertainment 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 Esports Entertainment Group are associated (or correlated) with Gan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan has no effect on the direction of Esports Entertainment i.e., Esports Entertainment and Gan go up and down completely randomly.
Pair Corralation between Esports Entertainment and Gan
Given the investment horizon of 90 days Esports Entertainment Group is expected to under-perform the Gan. In addition to that, Esports Entertainment is 1.22 times more volatile than Gan. It trades about -0.69 of its total potential returns per unit of risk. Gan is currently generating about 0.02 per unit of volatility. 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 Against |
| Strength | Very Weak |
| Accuracy | 4.24% |
| Values | Daily Returns |
Esports Entertainment Group vs. Gan
Performance |
| Timeline |
| Esports Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gan |
Esports Entertainment and Gan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esports Entertainment and Gan
The main advantage of trading using opposite Esports Entertainment and Gan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esports Entertainment position performs unexpectedly, Gan 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 Gan will offset losses from the drop in Gan's long position.| Esports Entertainment vs. Rush Street Interactive | Esports Entertainment vs. Everi Holdings | Esports Entertainment vs. Inspired Entertainment | Esports Entertainment vs. PointsBet Holdings Limited |
| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |