Correlation Between Champion Gaming and Loandepot
Can any of the company-specific risk be diversified away by investing in both Champion Gaming and Loandepot 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 Champion Gaming and Loandepot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Gaming Group and Loandepot, you can compare the effects of market volatilities on Champion Gaming and Loandepot 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 Champion Gaming with a short position of Loandepot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Gaming and Loandepot.
Diversification Opportunities for Champion Gaming and Loandepot
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Champion and Loandepot is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Champion Gaming Group and Loandepot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loandepot and Champion Gaming 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 Champion Gaming Group are associated (or correlated) with Loandepot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loandepot has no effect on the direction of Champion Gaming i.e., Champion Gaming and Loandepot go up and down completely randomly.
Pair Corralation between Champion Gaming and Loandepot
Assuming the 90 days horizon Champion Gaming Group is expected to under-perform the Loandepot. In addition to that, Champion Gaming is 6.42 times more volatile than Loandepot. It trades about -0.23 of its total potential returns per unit of risk. Loandepot is currently generating about -0.33 per unit of volatility. If you would invest 210.00 in Loandepot on October 13, 2024 and sell it today you would lose (44.00) from holding Loandepot or give up 20.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Champion Gaming Group vs. Loandepot
Performance |
| Timeline |
| Champion Gaming Group |
| Loandepot |
Champion Gaming and Loandepot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Gaming and Loandepot
The main advantage of trading using opposite Champion Gaming and Loandepot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Gaming position performs unexpectedly, Loandepot 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 Loandepot will offset losses from the drop in Loandepot's long position.| Champion Gaming vs. Constellation Brands Class | Champion Gaming vs. Haemonetics | Champion Gaming vs. Loud Beverage Group | Champion Gaming vs. Oatly Group AB |
| Loandepot vs. CNFinance Holdings | Loandepot vs. Security National Financial | Loandepot vs. Encore Capital Group | Loandepot vs. UWM Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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