Correlation Between GameOn Entertainment and Blue Hat
Can any of the company-specific risk be diversified away by investing in both GameOn Entertainment and Blue Hat 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 GameOn Entertainment and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameOn Entertainment Technologies and Blue Hat Interactive, you can compare the effects of market volatilities on GameOn Entertainment and Blue Hat 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 GameOn Entertainment with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameOn Entertainment and Blue Hat.
Diversification Opportunities for GameOn Entertainment and Blue Hat
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GameOn and Blue is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GameOn Entertainment Technolog and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive and GameOn 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 GameOn Entertainment Technologies are associated (or correlated) with Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of GameOn Entertainment i.e., GameOn Entertainment and Blue Hat go up and down completely randomly.
Pair Corralation between GameOn Entertainment and Blue Hat
Assuming the 90 days horizon GameOn Entertainment Technologies is expected to generate 2.24 times more return on investment than Blue Hat. However, GameOn Entertainment is 2.24 times more volatile than Blue Hat Interactive. It trades about 0.18 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about -0.15 per unit of risk. If you would invest 0.60 in GameOn Entertainment Technologies on November 9, 2024 and sell it today you would earn a total of 0.40 from holding GameOn Entertainment Technologies or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
GameOn Entertainment Technolog vs. Blue Hat Interactive
Performance |
| Timeline |
| GameOn Entertainment |
| Blue Hat Interactive |
GameOn Entertainment and Blue Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameOn Entertainment and Blue Hat
The main advantage of trading using opposite GameOn Entertainment and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameOn Entertainment position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.| GameOn Entertainment vs. NEXON Co | GameOn Entertainment vs. i3 Interactive | GameOn Entertainment vs. Playstudios | GameOn Entertainment vs. Doubledown Interactive Co |
| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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