Correlation Between Bill and Wicket Gaming

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

By analyzing existing cross correlation between Bill Com Holdings and Wicket Gaming AB, you can compare the effects of market volatilities on Bill and Wicket 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 Bill with a short position of Wicket Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bill and Wicket Gaming.

Diversification Opportunities for Bill and Wicket Gaming

0.0

Correlation Coefficient

Bill  Wicket Gaming

Pay attention - limited upside

The 3 months correlation between Bill and Wicket is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Wicket Gaming AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wicket Gaming AB and Bill 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 Bill Com Holdings are associated (or correlated) with Wicket Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wicket Gaming AB has no effect on the direction of Bill i.e., Bill and Wicket Gaming go up and down completely randomly.

Pair Corralation between Bill and Wicket Gaming

If you would invest  5,191  in Bill Com Holdings on September 13, 2024 and sell it today you would earn a total of  3,800  from holding Bill Com Holdings or generate 73.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	73.02%
Values	Daily Returns

Bill Com Holdings  vs.  Wicket Gaming AB

Bill Com Holdings

Risk-Adjusted Performance

21 of 100

Solid

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

Wicket Gaming AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wicket Gaming AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Wicket Gaming is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bill and Wicket Gaming

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

The idea behind Bill Com Holdings and Wicket Gaming AB 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.