Correlation Between Guild Esports and SCI Engineered

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

Diversification Opportunities for Guild Esports and SCI Engineered

-0.29

Correlation Coefficient

Guild Esports  SCI Engineered

Very good diversification

The 3 months correlation between Guild and SCI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guild Esports Plc and SCI Engineered Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Engineered Materials 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 SCI Engineered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Engineered Materials has no effect on the direction of Guild Esports i.e., Guild Esports and SCI Engineered go up and down completely randomly.

Pair Corralation between Guild Esports and SCI Engineered

Assuming the 90 days horizon Guild Esports Plc is expected to generate 10.34 times more return on investment than SCI Engineered. However, Guild Esports is 10.34 times more volatile than SCI Engineered Materials. It trades about 0.12 of its potential returns per unit of risk. SCI Engineered Materials is currently generating about 0.14 per unit of risk. If you would invest  1.75  in Guild Esports Plc on September 6, 2025 and sell it today you would earn a total of  0.15  from holding Guild Esports Plc or generate 8.57% return on investment over 90 days.

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

Guild Esports Plc  vs.  SCI Engineered Materials

Guild Esports Plc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Guild Esports Plc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Guild Esports reported solid returns over the last few months and may actually be approaching a breakup point.

SCI Engineered Materials

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SCI Engineered Materials are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting forward indicators, SCI Engineered sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Guild Esports and SCI Engineered

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

The idea behind Guild Esports Plc and SCI Engineered Materials 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.