Correlation Between ATT and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both ATT and GameSquare Holdings 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 ATT and GameSquare Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and GameSquare Holdings, you can compare the effects of market volatilities on ATT and GameSquare Holdings 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 ATT with a short position of GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and GameSquare Holdings.
Diversification Opportunities for ATT and GameSquare Holdings
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATT and GameSquare is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings and ATT 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 ATT Inc are associated (or correlated) with GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of ATT i.e., ATT and GameSquare Holdings go up and down completely randomly.
Pair Corralation between ATT and GameSquare Holdings
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.22 times more return on investment than GameSquare Holdings. However, ATT Inc is 4.64 times less risky than GameSquare Holdings. It trades about 0.13 of its potential returns per unit of risk. GameSquare Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,273 in ATT Inc on January 10, 2025 and sell it today you would earn a total of 1,366 from holding ATT Inc or generate 107.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. GameSquare Holdings
Performance |
| Timeline |
| ATT Inc |
| GameSquare Holdings |
ATT and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and GameSquare Holdings
The main advantage of trading using opposite ATT and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.The idea behind ATT Inc and GameSquare Holdings 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.| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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