Correlation Between Entain Plc and Gan
Can any of the company-specific risk be diversified away by investing in both Entain Plc 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 Entain Plc and Gan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entain Plc and Gan, you can compare the effects of market volatilities on Entain Plc 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 Entain Plc with a short position of Gan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entain Plc and Gan.
Diversification Opportunities for Entain Plc and Gan
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entain and Gan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Entain Plc and Gan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan and Entain Plc 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 Entain Plc 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 Entain Plc i.e., Entain Plc and Gan go up and down completely randomly.
Pair Corralation between Entain Plc and Gan
Assuming the 90 days horizon Entain Plc is expected to under-perform the Gan. But the pink sheet apears to be less risky and, when comparing its historical volatility, Entain Plc is 1.66 times less risky than Gan. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Gan is currently generating about 0.02 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 96.89% |
| Values | Daily Returns |
Entain Plc vs. Gan
Performance |
| Timeline |
| Entain Plc |
| Gan |
Entain Plc and Gan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entain Plc and Gan
The main advantage of trading using opposite Entain Plc and Gan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entain Plc 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.| Entain Plc vs. Real Luck Group | Entain Plc vs. Betmakers Technology Group | Entain Plc vs. Jackpot Digital |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |