Correlation Between Genius Brands and Allied Gaming
Can any of the company-specific risk be diversified away by investing in both Genius Brands and Allied Gaming 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 Genius Brands and Allied Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Brands International and Allied Gaming Entertainment, you can compare the effects of market volatilities on Genius Brands and Allied Gaming 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 Genius Brands with a short position of Allied Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Brands and Allied Gaming.
Diversification Opportunities for Genius Brands and Allied Gaming
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genius and Allied is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Genius Brands International and Allied Gaming Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Gaming Entert and Genius Brands 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 Genius Brands International are associated (or correlated) with Allied Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Gaming Entert has no effect on the direction of Genius Brands i.e., Genius Brands and Allied Gaming go up and down completely randomly.
Pair Corralation between Genius Brands and Allied Gaming
Given the investment horizon of 90 days Genius Brands International is expected to under-perform the Allied Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Genius Brands International is 4.45 times less risky than Allied Gaming. The stock trades about -0.07 of its potential returns per unit of risk. The Allied Gaming Entertainment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Allied Gaming Entertainment on August 30, 2024 and sell it today you would lose (0.98) from holding Allied Gaming Entertainment or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 32.69% |
| Values | Daily Returns |
Genius Brands International vs. Allied Gaming Entertainment
Performance |
| Timeline |
| Genius Brands Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Allied Gaming Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genius Brands and Allied Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Brands and Allied Gaming
The main advantage of trading using opposite Genius Brands and Allied Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Brands position performs unexpectedly, Allied Gaming 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 Allied Gaming will offset losses from the drop in Allied Gaming's long position.| Genius Brands vs. Cineverse Corp | Genius Brands vs. LiveOne | Genius Brands vs. Hall of Fame | Genius Brands vs. Netflix |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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