Correlation Between PointsBet Holdings and Jackpot Digital
Can any of the company-specific risk be diversified away by investing in both PointsBet Holdings and Jackpot Digital 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 Jackpot Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PointsBet Holdings Limited and Jackpot Digital, you can compare the effects of market volatilities on PointsBet Holdings and Jackpot Digital 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 Jackpot Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PointsBet Holdings and Jackpot Digital.
Diversification Opportunities for PointsBet Holdings and Jackpot Digital
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PointsBet and Jackpot is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding PointsBet Holdings Limited and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Limited are associated (or correlated) with Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of PointsBet Holdings i.e., PointsBet Holdings and Jackpot Digital go up and down completely randomly.
Pair Corralation between PointsBet Holdings and Jackpot Digital
Assuming the 90 days horizon PointsBet Holdings Limited is expected to generate 1.39 times more return on investment than Jackpot Digital. However, PointsBet Holdings is 1.39 times more volatile than Jackpot Digital. It trades about 0.28 of its potential returns per unit of risk. Jackpot Digital is currently generating about -0.09 per unit of risk. If you would invest 54.00 in PointsBet Holdings Limited on September 3, 2024 and sell it today you would earn a total of 11.00 from holding PointsBet Holdings Limited or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
PointsBet Holdings Limited vs. Jackpot Digital
Performance |
| Timeline |
| PointsBet Holdings |
| Jackpot Digital |
PointsBet Holdings and Jackpot Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PointsBet Holdings and Jackpot Digital
The main advantage of trading using opposite PointsBet Holdings and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PointsBet Holdings position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.| PointsBet Holdings vs. Entain DRC PLC | PointsBet Holdings vs. 888 Holdings | PointsBet Holdings vs. Intema Solutions | PointsBet Holdings vs. Royal Wins |
| Jackpot Digital vs. Arhaus Inc | Jackpot Digital vs. Floor Decor Holdings | Jackpot Digital vs. Live Ventures | Jackpot Digital vs. Cisco Systems |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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