Correlation Between Doubledown Interactive and Turtle Beach

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

By analyzing existing cross correlation between Doubledown Interactive Co and Turtle Beach, you can compare the effects of market volatilities on Doubledown Interactive and Turtle Beach 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 Doubledown Interactive with a short position of Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Turtle Beach.

Diversification Opportunities for Doubledown Interactive and Turtle Beach

-0.14

Correlation Coefficient

Doubledown Interactive  Turtle Beach

Good diversification

The 3 months correlation between Doubledown and Turtle is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Turtle Beach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Turtle Beach go up and down completely randomly.

Pair Corralation between Doubledown Interactive and Turtle Beach

Considering the 90-day investment horizon Doubledown Interactive is expected to generate 2.84 times less return on investment than Turtle Beach. But when comparing it to its historical volatility, Doubledown Interactive Co is 1.3 times less risky than Turtle Beach. It trades about 0.01 of its potential returns per unit of risk. Turtle Beach is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,427  in Turtle Beach on March 30, 2025 and sell it today you would lose (38.00) from holding Turtle Beach or give up 2.66% of portfolio value over 90 days.

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

Doubledown Interactive Co  vs.  Turtle Beach

Doubledown Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Turtle Beach

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turtle Beach are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Turtle Beach is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Doubledown Interactive and Turtle Beach

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

The idea behind Doubledown Interactive Co and Turtle Beach 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.