Correlation Between Esports Entertainment and International Game
Can any of the company-specific risk be diversified away by investing in both Esports Entertainment and International Game 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 International Game 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 International Game Technology, you can compare the effects of market volatilities on Esports Entertainment and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esports Entertainment and International Game.
Diversification Opportunities for Esports Entertainment and International Game
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Esports and International is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Esports Entertainment Group and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Esports Entertainment i.e., Esports Entertainment and International Game go up and down completely randomly.
Pair Corralation between Esports Entertainment and International Game
If you would invest 54.00 in Esports Entertainment Group on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Esports Entertainment Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Esports Entertainment Group vs. International Game Technology
Performance |
| Timeline |
| Esports Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International Game |
Esports Entertainment and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esports Entertainment and International Game
The main advantage of trading using opposite Esports Entertainment and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esports Entertainment position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game'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 |
| International Game vs. Light Wonder | International Game vs. Inspired Entertainment | International Game vs. PlayAGS | International Game vs. Churchill Downs Incorporated |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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