Correlation Between Bank Central and Guild Esports
Can any of the company-specific risk be diversified away by investing in both Bank Central and Guild Esports 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 Bank Central and Guild Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Guild Esports Plc, you can compare the effects of market volatilities on Bank Central and Guild Esports 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 Bank Central with a short position of Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Guild Esports.
Diversification Opportunities for Bank Central and Guild Esports
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Guild is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc and Bank Central 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 Bank Central Asia are associated (or correlated) with Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of Bank Central i.e., Bank Central and Guild Esports go up and down completely randomly.
Pair Corralation between Bank Central and Guild Esports
Assuming the 90 days horizon Bank Central is expected to generate 17.91 times less return on investment than Guild Esports. But when comparing it to its historical volatility, Bank Central Asia is 10.9 times less risky than Guild Esports. It trades about 0.05 of its potential returns per unit of risk. Guild Esports Plc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.27 in Guild Esports Plc on September 1, 2024 and sell it today you would earn a total of 0.50 from holding Guild Esports Plc or generate 185.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bank Central Asia vs. Guild Esports Plc
Performance |
| Timeline |
| Bank Central Asia |
| Guild Esports Plc |
Bank Central and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Guild Esports
The main advantage of trading using opposite Bank Central and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.| Bank Central vs. Piraeus Bank SA | Bank Central vs. Turkiye Garanti Bankasi | Bank Central vs. Delhi Bank Corp | Bank Central vs. Uwharrie Capital Corp |
| Guild Esports vs. ZoomerMedia Limited | Guild Esports vs. Celtic plc | Guild Esports vs. Network Media Group | Guild Esports vs. OverActive Media Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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