Correlation Between Carnival Plc and Sharplink Gaming

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

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

Diversification Opportunities for Carnival Plc and Sharplink Gaming

0.16

Correlation Coefficient

Carnival Plc  Sharplink Gaming

Average diversification

The 3 months correlation between Carnival and Sharplink is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Carnival Plc ADS and Sharplink Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharplink Gaming and Carnival Plc 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 Carnival Plc ADS are associated (or correlated) with Sharplink Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharplink Gaming has no effect on the direction of Carnival Plc i.e., Carnival Plc and Sharplink Gaming go up and down completely randomly.

Pair Corralation between Carnival Plc and Sharplink Gaming

Considering the 90-day investment horizon Carnival Plc is expected to generate 15.66 times less return on investment than Sharplink Gaming. But when comparing it to its historical volatility, Carnival Plc ADS is 24.85 times less risky than Sharplink Gaming. It trades about 0.27 of its potential returns per unit of risk. Sharplink Gaming is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  327.00  in Sharplink Gaming on May 7, 2025 and sell it today you would earn a total of  1,696  from holding Sharplink Gaming or generate 518.65% return on investment over 90 days.

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

Carnival Plc ADS  vs.  Sharplink Gaming

Carnival Plc ADS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Carnival Plc ADS are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Carnival Plc disclosed solid returns over the last few months and may actually be approaching a breakup point.

Sharplink Gaming

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sharplink Gaming are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, Sharplink Gaming unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Carnival Plc and Sharplink Gaming

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

The idea behind Carnival Plc ADS and Sharplink Gaming 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.