Correlation Between Blue Hat and GameOn Entertainment

Can any of the company-specific risk be diversified away by investing in both Blue Hat and GameOn Entertainment 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 Blue Hat and GameOn Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blue Hat Interactive and GameOn Entertainment Technologies, you can compare the effects of market volatilities on Blue Hat and GameOn Entertainment 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 Blue Hat with a short position of GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and GameOn Entertainment.

Diversification Opportunities for Blue Hat and GameOn Entertainment

-0.11

Correlation Coefficient

Blue Hat  GameOn Entertainment

Good diversification

The 3 months correlation between Blue and GameOn is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment and Blue Hat 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 Blue Hat Interactive are associated (or correlated) with GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of Blue Hat i.e., Blue Hat and GameOn Entertainment go up and down completely randomly.

Pair Corralation between Blue Hat and GameOn Entertainment

Given the investment horizon of 90 days Blue Hat Interactive is expected to under-perform the GameOn Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Blue Hat Interactive is 2.6 times less risky than GameOn Entertainment. The stock trades about -0.13 of its potential returns per unit of risk. The GameOn Entertainment Technologies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1.11  in GameOn Entertainment Technologies on December 28, 2024 and sell it today you would earn a total of  0.48  from holding GameOn Entertainment Technologies or generate 43.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Blue Hat Interactive  vs.  GameOn Entertainment Technolog

Blue Hat Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Hat Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GameOn Entertainment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GameOn Entertainment Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GameOn Entertainment reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blue Hat and GameOn Entertainment

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

The idea behind Blue Hat Interactive and GameOn Entertainment Technologies 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.