Correlation Between Global Gaming and BTCS

Can any of the company-specific risk be diversified away by investing in both Global Gaming and BTCS 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 Global Gaming and BTCS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Gaming Technologies and BTCS Inc, you can compare the effects of market volatilities on Global Gaming and BTCS 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 Global Gaming with a short position of BTCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gaming and BTCS.

Diversification Opportunities for Global Gaming and BTCS

0.0

Correlation Coefficient

Global Gaming  BTCS

Pay attention - limited upside

The 3 months correlation between Global and BTCS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Gaming Technologies and BTCS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTCS Inc and Global 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 Global Gaming Technologies are associated (or correlated) with BTCS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTCS Inc has no effect on the direction of Global Gaming i.e., Global Gaming and BTCS go up and down completely randomly.

Pair Corralation between Global Gaming and BTCS

If you would invest  0.01  in Global Gaming Technologies on February 5, 2024 and sell it today you would earn a total of  0.00  from holding Global Gaming Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Gaming Technologies  vs.  BTCS Inc

Global Gaming Techno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Gaming Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Global Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BTCS Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BTCS Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, BTCS may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Global Gaming and BTCS

The main advantage of trading using opposite Global Gaming and BTCS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gaming position performs unexpectedly, BTCS 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 BTCS will offset losses from the drop in BTCS's long position.

The idea behind Global Gaming Technologies and BTCS 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.