Correlation Between GUILD ESPORTS and ScanSource

Can any of the company-specific risk be diversified away by investing in both GUILD ESPORTS and ScanSource 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 ScanSource 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 ScanSource, you can compare the effects of market volatilities on GUILD ESPORTS and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUILD ESPORTS and ScanSource.

Diversification Opportunities for GUILD ESPORTS and ScanSource

0.08

Correlation Coefficient

GUILD ESPORTS  ScanSource

Significant diversification

The 3 months correlation between GUILD and ScanSource is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GUILD ESPORTS PLC and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of GUILD ESPORTS i.e., GUILD ESPORTS and ScanSource go up and down completely randomly.

Pair Corralation between GUILD ESPORTS and ScanSource

Assuming the 90 days horizon GUILD ESPORTS PLC is expected to generate 81.11 times more return on investment than ScanSource. However, GUILD ESPORTS is 81.11 times more volatile than ScanSource. It trades about 0.21 of its potential returns per unit of risk. ScanSource is currently generating about 0.03 per unit of risk. If you would invest  0.05  in GUILD ESPORTS PLC on May 16, 2025 and sell it today you would earn a total of  0.15  from holding GUILD ESPORTS PLC or generate 300.0% return on investment over 90 days.

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

GUILD ESPORTS PLC  vs.  ScanSource

GUILD ESPORTS PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GUILD ESPORTS PLC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GUILD ESPORTS reported solid returns over the last few months and may actually be approaching a breakup point.

ScanSource

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ScanSource is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GUILD ESPORTS and ScanSource

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

The idea behind GUILD ESPORTS PLC and ScanSource 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.