Correlation Between SGHC and Ebet
Can any of the company-specific risk be diversified away by investing in both SGHC and Ebet 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 SGHC and Ebet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SGHC Limited and Ebet Inc, you can compare the effects of market volatilities on SGHC and Ebet 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 SGHC with a short position of Ebet. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGHC and Ebet.
Diversification Opportunities for SGHC and Ebet
Pay attention - limited upside
The 3 months correlation between SGHC and Ebet is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SGHC Limited and Ebet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebet Inc and SGHC 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 SGHC Limited are associated (or correlated) with Ebet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebet Inc has no effect on the direction of SGHC i.e., SGHC and Ebet go up and down completely randomly.
Pair Corralation between SGHC and Ebet
Given the investment horizon of 90 days SGHC Limited is expected to generate 0.45 times more return on investment than Ebet. However, SGHC Limited is 2.21 times less risky than Ebet. It trades about 0.07 of its potential returns per unit of risk. Ebet Inc is currently generating about -0.14 per unit of risk. If you would invest 286.00 in SGHC Limited on August 31, 2024 and sell it today you would earn a total of 387.00 from holding SGHC Limited or generate 135.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 28.51% |
| Values | Daily Returns |
SGHC Limited vs. Ebet Inc
Performance |
| Timeline |
| SGHC Limited |
| Ebet Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SGHC and Ebet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SGHC and Ebet
The main advantage of trading using opposite SGHC and Ebet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGHC position performs unexpectedly, Ebet 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 Ebet will offset losses from the drop in Ebet's long position.The idea behind SGHC Limited and Ebet Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ebet vs. PointsBet Holdings Limited | Ebet vs. Gan | Ebet vs. Rush Street Interactive | Ebet vs. Lottery, Warrants |
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 Stocks Directory module to find actively traded stocks across global markets.
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