Correlation Between Contagious Gaming and TGS Esports
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming and TGS Esports 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 Contagious Gaming and TGS Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and TGS Esports, you can compare the effects of market volatilities on Contagious Gaming and TGS Esports 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 Contagious Gaming with a short position of TGS Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and TGS Esports.
Diversification Opportunities for Contagious Gaming and TGS Esports
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Contagious and TGS is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and TGS Esports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS Esports and Contagious 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 Contagious Gaming are associated (or correlated) with TGS Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS Esports has no effect on the direction of Contagious Gaming i.e., Contagious Gaming and TGS Esports go up and down completely randomly.
Pair Corralation between Contagious Gaming and TGS Esports
If you would invest 2.00 in Contagious Gaming on June 18, 2024 and sell it today you would lose (1.00) from holding Contagious Gaming or give up 50.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Contagious Gaming vs. TGS Esports
Performance |
Timeline |
Contagious Gaming |
TGS Esports |
Contagious Gaming and TGS Esports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contagious Gaming and TGS Esports
The main advantage of trading using opposite Contagious Gaming and TGS Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming position performs unexpectedly, TGS Esports 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 TGS Esports will offset losses from the drop in TGS Esports' long position.Contagious Gaming vs. Bausch Health Companies | Contagious Gaming vs. Katipult Technology Corp | Contagious Gaming vs. Quebecor | Contagious Gaming vs. Top 10 Split |
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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