Correlation Between Guild Esports and Lions Gate
Can any of the company-specific risk be diversified away by investing in both Guild Esports and Lions Gate 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 Guild Esports and Lions Gate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guild Esports Plc and Lions Gate Entertainment, you can compare the effects of market volatilities on Guild Esports and Lions Gate 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 Guild Esports with a short position of Lions Gate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guild Esports and Lions Gate.
Diversification Opportunities for Guild Esports and Lions Gate
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guild and Lions is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guild Esports Plc and Lions Gate Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lions Gate Entertainment and Guild Esports 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 Guild Esports Plc are associated (or correlated) with Lions Gate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lions Gate Entertainment has no effect on the direction of Guild Esports i.e., Guild Esports and Lions Gate go up and down completely randomly.
Pair Corralation between Guild Esports and Lions Gate
If you would invest 1,024 in Lions Gate Entertainment on February 7, 2024 and sell it today you would earn a total of 67.00 from holding Lions Gate Entertainment or generate 6.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guild Esports Plc vs. Lions Gate Entertainment
Performance |
Timeline |
Guild Esports Plc |
Lions Gate Entertainment |
Guild Esports and Lions Gate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guild Esports and Lions Gate
The main advantage of trading using opposite Guild Esports and Lions Gate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guild Esports position performs unexpectedly, Lions Gate 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 Lions Gate will offset losses from the drop in Lions Gate's long position.Guild Esports vs. ZoomerMedia Limited | Guild Esports vs. Celtic plc | Guild Esports vs. Network Media Group | Guild Esports vs. OverActive Media Corp |
Lions Gate vs. Gannett Co | Lions Gate vs. Dallasnews Corp | Lions Gate vs. Scholastic | Lions Gate vs. Pearson PLC ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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