Correlation Between Esports Entertainment and Hims Hers
Can any of the company-specific risk be diversified away by investing in both Esports Entertainment and Hims Hers 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 Hims Hers 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 Hims Hers Health, you can compare the effects of market volatilities on Esports Entertainment and Hims Hers 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 Hims Hers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esports Entertainment and Hims Hers.
Diversification Opportunities for Esports Entertainment and Hims Hers
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Esports and Hims is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Esports Entertainment Group and Hims Hers Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hims Hers Health 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 Hims Hers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hims Hers Health has no effect on the direction of Esports Entertainment i.e., Esports Entertainment and Hims Hers go up and down completely randomly.
Pair Corralation between Esports Entertainment and Hims Hers
If you would invest 1,304 in Hims Hers Health on August 27, 2024 and sell it today you would earn a total of 1,229 from holding Hims Hers Health or generate 94.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Esports Entertainment Group vs. Hims Hers Health
Performance |
| Timeline |
| Esports Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hims Hers Health |
Esports Entertainment and Hims Hers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esports Entertainment and Hims Hers
The main advantage of trading using opposite Esports Entertainment and Hims Hers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esports Entertainment position performs unexpectedly, Hims Hers 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 Hims Hers will offset losses from the drop in Hims Hers' long position.| Esports Entertainment vs. Rush Street Interactive | Esports Entertainment vs. Everi Holdings | Esports Entertainment vs. Inspired Entertainment | Esports Entertainment vs. PointsBet Holdings Limited |
| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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