Correlation Between Good Gaming and Real Luck
Can any of the company-specific risk be diversified away by investing in both Good Gaming and Real Luck 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 Good Gaming and Real Luck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Good Gaming and Real Luck Group, you can compare the effects of market volatilities on Good Gaming and Real Luck 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 Good Gaming with a short position of Real Luck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Gaming and Real Luck.
Diversification Opportunities for Good Gaming and Real Luck
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Good and Real is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Good Gaming and Real Luck Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Luck Group and Good Gaming 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 Good Gaming are associated (or correlated) with Real Luck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Luck Group has no effect on the direction of Good Gaming i.e., Good Gaming and Real Luck go up and down completely randomly.
Pair Corralation between Good Gaming and Real Luck
Given the investment horizon of 90 days Good Gaming is expected to generate 68.0 times less return on investment than Real Luck. But when comparing it to its historical volatility, Good Gaming is 30.63 times less risky than Real Luck. It trades about 0.09 of its potential returns per unit of risk. Real Luck Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.17 in Real Luck Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Real Luck Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Good Gaming vs. Real Luck Group
Performance |
| Timeline |
| Good Gaming |
| Real Luck Group |
Good Gaming and Real Luck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Gaming and Real Luck
The main advantage of trading using opposite Good Gaming and Real Luck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Gaming position performs unexpectedly, Real Luck 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 Real Luck will offset losses from the drop in Real Luck's long position.| Good Gaming vs. Real Luck Group | Good Gaming vs. Betmakers Technology Group | Good Gaming vs. Jackpot Digital |
| Real Luck vs. 888 Holdings | Real Luck vs. Royal Wins | Real Luck vs. Betmakers Technology Group | Real Luck vs. Intema Solutions |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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