Correlation Between Brinker International and Allied Gaming
Can any of the company-specific risk be diversified away by investing in both Brinker International and Allied 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 Brinker International and Allied Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinker International and Allied Gaming Entertainment, you can compare the effects of market volatilities on Brinker International and Allied 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 Brinker International with a short position of Allied Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Allied Gaming.
Diversification Opportunities for Brinker International and Allied Gaming
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brinker and Allied is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and Allied Gaming Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Gaming Entert and Brinker International 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 Brinker International are associated (or correlated) with Allied Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Gaming Entert has no effect on the direction of Brinker International i.e., Brinker International and Allied Gaming go up and down completely randomly.
Pair Corralation between Brinker International and Allied Gaming
Considering the 90-day investment horizon Brinker International is expected to generate 0.89 times more return on investment than Allied Gaming. However, Brinker International is 1.13 times less risky than Allied Gaming. It trades about 0.2 of its potential returns per unit of risk. Allied Gaming Entertainment is currently generating about -0.55 per unit of risk. If you would invest 11,865 in Brinker International on September 14, 2024 and sell it today you would earn a total of 1,109 from holding Brinker International or generate 9.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Brinker International vs. Allied Gaming Entertainment
Performance |
Timeline |
Brinker International |
Allied Gaming Entert |
Brinker International and Allied Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brinker International and Allied Gaming
The main advantage of trading using opposite Brinker International and Allied Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International position performs unexpectedly, Allied 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 Allied Gaming will offset losses from the drop in Allied Gaming's long position.Brinker International vs. Good Times Restaurants | Brinker International vs. Auburn National Bancorporation |
Allied Gaming vs. American Picture House | Allied Gaming vs. Hall of Fame | Allied Gaming vs. New Wave Holdings | Allied Gaming vs. ZoomerMedia Limited |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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