Correlation Between Pointsbet Holdings and Global Masters
Can any of the company-specific risk be diversified away by investing in both Pointsbet Holdings and Global Masters 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 Pointsbet Holdings and Global Masters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pointsbet Holdings and Global Masters, you can compare the effects of market volatilities on Pointsbet Holdings and Global Masters 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 Pointsbet Holdings with a short position of Global Masters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pointsbet Holdings and Global Masters.
Diversification Opportunities for Pointsbet Holdings and Global Masters
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pointsbet and Global is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Pointsbet Holdings and Global Masters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Masters and Pointsbet Holdings 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 Pointsbet Holdings are associated (or correlated) with Global Masters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Masters has no effect on the direction of Pointsbet Holdings i.e., Pointsbet Holdings and Global Masters go up and down completely randomly.
Pair Corralation between Pointsbet Holdings and Global Masters
Assuming the 90 days trading horizon Pointsbet Holdings is expected to generate 3.11 times more return on investment than Global Masters. However, Pointsbet Holdings is 3.11 times more volatile than Global Masters. It trades about 0.38 of its potential returns per unit of risk. Global Masters is currently generating about 0.17 per unit of risk. If you would invest 79.00 in Pointsbet Holdings on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Pointsbet Holdings or generate 31.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pointsbet Holdings vs. Global Masters
Performance |
| Timeline |
| Pointsbet Holdings |
| Global Masters |
Pointsbet Holdings and Global Masters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pointsbet Holdings and Global Masters
The main advantage of trading using opposite Pointsbet Holdings and Global Masters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pointsbet Holdings position performs unexpectedly, Global Masters 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 Global Masters will offset losses from the drop in Global Masters' long position.| Pointsbet Holdings vs. Commonwealth Bank of | Pointsbet Holdings vs. IDP Education | Pointsbet Holdings vs. National Australia Bank | Pointsbet Holdings vs. Step One Clothing |
| Global Masters vs. Mayfield Childcare | Global Masters vs. Skycity Entertainment Group | Global Masters vs. Toys R Us | Global Masters vs. RLF AgTech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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