Correlation Between Lottery, Common and Gan
Can any of the company-specific risk be diversified away by investing in both Lottery, Common 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 Lottery, Common and Gan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lottery, Common Stock and Gan, you can compare the effects of market volatilities on Lottery, Common 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 Lottery, Common with a short position of Gan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lottery, Common and Gan.
Diversification Opportunities for Lottery, Common and Gan
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lottery, and Gan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lottery, Common Stock and Gan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan and Lottery, Common 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 Lottery, Common Stock 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 Lottery, Common i.e., Lottery, Common and Gan go up and down completely randomly.
Pair Corralation between Lottery, Common and Gan
Given the investment horizon of 90 days Lottery, Common Stock is expected to under-perform the Gan. In addition to that, Lottery, Common is 5.69 times more volatile than Gan. It trades about -0.18 of its total potential returns per unit of risk. Gan is currently generating about 0.1 per unit of volatility. If you would invest 172.00 in Gan on August 25, 2024 and sell it today you would earn a total of 12.00 from holding Gan or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lottery, Common Stock vs. Gan
Performance |
| Timeline |
| Lottery, Common Stock |
| Gan |
Lottery, Common and Gan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lottery, Common and Gan
The main advantage of trading using opposite Lottery, Common and Gan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lottery, Common 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.| Lottery, Common vs. PointsBet Holdings Limited | Lottery, Common vs. Gan | Lottery, Common vs. Rush Street Interactive | Lottery, Common vs. Light Wonder |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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